Post by RS Davis on Dec 24, 2005 18:01:12 GMT -5
Here's a personal example of how to think like an economist.
I hate Michael Savage. I think he's a total jagov, and many times really doesn't understand that of which he speaks. He drives me crazy. He makes me yell at the radio. And yet I listen to him all the time.
So, to an economist, I actually like Michael Savage. Because it is not about my feelings. It is about my actions. My action of listening indicates that I like him. I get something out of it. Who knows what it is I get out of it, but for whatever reason, I keep listening. In some way, on some level, he provides me with a service that I want.
Economists don't study what you say you like or want. They study what your actions prove you want. For example, you can say that you hate Wal Mart because mom n' pop stores offer better service. But if you go to Wal Mart instead of that mom n' pop, clearly there is something there that makes you value it more. It could be price. It could be convenience. It could be the color of the uniforms or that chipper smiley face dancing around and whistling.
But whatever it is, your actions have shown you prefer Wal Mart.
Food for thought. Lesson over. 8)
- Rick
I hate Michael Savage. I think he's a total jagov, and many times really doesn't understand that of which he speaks. He drives me crazy. He makes me yell at the radio. And yet I listen to him all the time.
So, to an economist, I actually like Michael Savage. Because it is not about my feelings. It is about my actions. My action of listening indicates that I like him. I get something out of it. Who knows what it is I get out of it, but for whatever reason, I keep listening. In some way, on some level, he provides me with a service that I want.
Economists don't study what you say you like or want. They study what your actions prove you want. For example, you can say that you hate Wal Mart because mom n' pop stores offer better service. But if you go to Wal Mart instead of that mom n' pop, clearly there is something there that makes you value it more. It could be price. It could be convenience. It could be the color of the uniforms or that chipper smiley face dancing around and whistling.
But whatever it is, your actions have shown you prefer Wal Mart.
Food for thought. Lesson over. 8)
- Rick
