- What to produce?: This question addresses the types of goods and services that should be produced based on the needs and wants of the population.
- How to produce?: This question focuses on the methods and processes used to produce goods and services, considering factors like technology and resource availability.
- For whom to produce?: This question determines who will receive the produced goods and services, which can depend on factors like income distribution and social equity.
- These questions are fundamental in understanding how resources are allocated in an economy.
Economics in One Lesson is an introduction to economics written by Henry Hazlitt and first published in 1946. It is based on Frédéric Bastiat's essay Ce qu'on voit et ce qu'on ne voit pas (English: "What is Seen and What is Not Seen").
The "One Lesson" is stated in Part One of the book: "The art of economics consists in looking not merely at the immediate but at the longer effects of any act or policy; it consists in tracing the consequences of that policy not merely for one group but for all groups." Part Two consists of twenty-four chapters, each demonstrating the lesson by tracing the effects of one common economic belief, and exposing common economic belief as a series of fallacies.
Among its policy recommendations are the advocacy of free trade, an opposition to price controls, an opposition to monetary inflation, and an opposition to fiscal policy, such as stimulative governmental expenditures.
______________________
Economics in One Lesson. Special Edition for the Foundation for Economic Education. New York: Pocket Books. 1952.
_____________________
For Hayek, the best test for an economist is to understand the implicit fallacy contained in the underconsumption theories and in what is called the shrift paradox or paradox of saving: «It is not consumer’s demand that secures the generation of incomes. It is investment of the excess of incomes over consumer’s expenditires which keeps incomes up». A large number of economists are unable to understand these principles because they adopt the macroeconomic aggregate approach that Hayek considers to be a serious error that leads, in the final analysis, to social engineering.
The approach based on the model of equilibrium and mac-roeconomics is erroneous because «a science which starts with the conceit that it posses information which it cannot obtain is not a science».
___________________
At its core, Economics Farah Saed Dheere is the study of how humans make decisions in the face of scarcity. These can be individual decisions, family decisions, business decisions or societal decisions. If you look around carefully, you will see that scarcity is a fact of life.
The three basic economic questions are:
- Badges
- Science topic
- Similar topics
- Social Psychology
- Attitude