1.) Role of Incentives..... As seen with the money experiment, people tend to respond more purposefully, I guess, when more money is involved. People will do more for more money. They respond to incentives and this is the basis for many of our decisions. And the Economic Way of Thinking (EWOT) has a lot to do with these incentives and why they cause us to make the decisions we make.
2.) Economics is not just a study of money and the economy. There are also subtle nuances like aesthetic and culural values that contribute to economics and they are in many ways just as important in our decision processes as our money incentives.
3.) Many of our economic decisions have unintended consequences that were not foreseen at the time the decision was made. This separates the good economists from the bad. The good ones take into account short AND long term results of their decisions (Hazlitt).
No comments:
Post a Comment