FreeEconHelp.com, Learning Economics... Solved!: opportunity cost
Showing posts with label opportunity cost. Show all posts
Showing posts with label opportunity cost. Show all posts

6/22/18

How to figure out who has the comparative advantage.

16:18
How to figure out who has the comparative advantage.
Shortly after you learn about opportunity costs and PPFs, you will need to learn about gains from trade and comparative advantage. The trick to figuring out who has the comparative advantage in which good is to be able to calculate opportunity costs quickly and reliably. You will probably be given a table that shows the different possible levels of output a certain individual is able to produce (of two goods or services). You can use this information to calculate the tradeoffs (or opportunity costs) associated with the different possible levels of production. Once you have the opportunity cost calculated, you can compare that result to the opportunity cost the other country or individual has for the good to see which opportunity cost is lower. The individual or country with the lowest opportunity has the comparative advantage. Below, I go through two examples, one with individuals and another with countries.

6/18/18

What is the opportunity cost of going to College?

13:14
What is the opportunity cost of going to College?
The decision to go to College (or where to go to College) is going to be one of the most important of your life. Whether you decide to go to a local State school or a prestigious private liberal arts school is going to have long term impacts on your career outlooks and debt. It is important to consider all possible decisions and benefits and costs before you make this important decision. However, we would not be economists if we did not look at the opportunity costs associated with going to College (or University). Perhaps the largest opportunity cost will be the tuition of the College, but this is not going to be the only opportunity cost that we have to consider.


8/18/15

Games for learning economics

06:17
Games for learning economics
Freeeconhelp.com is proud to present the following games to help you learn economics:


Economics island is a short "choose your own adventure" or "point and click adventure" type game that begins with you being stranded on an island. As you progress through time, you gather resources ultimately planning your escape. Along the way you learn about opportunity cost, PPFs, and other introductory vocabulary (typically good for the first 2 or 3 chapters in a standard text book). The game allows you to experience the economic principles firsthand, generally before you are introduced to the terminology. It is recommended as study guide, or perhaps for those who REALLY need to learn the material but are having a hard time with dry textbooks. There is also a bit of challenge to the game, in trying to leverage your economic knowledge into completing the game faster. The quicker you pick up the principles and use them, the higher the score you can attain. This game is available for play at Newgrounds.com at the above link, and available via google play: Economics Island App. Amazon users can download the game on Amazon at: Economics Island Amazon App.

6/19/15

Learning Economics Video Game

19:31
Learning Economics Video Game

12/11/14

Economics for kids publishes its first book!

06:22
Economics for kids publishes its first book!
The book is finally available on Amazon. Thanks to everyone for their support during this process. Right now the physical version of the book is available for $6.99 and the kindle version is available for $1.99.

7/18/14

Economics for kids children's book

14:17
Economics for kids children's book
We are now live on Kickstarter! Click below for more information!
Kickstarter Project for Economics for Kids
Economics for Kids Kickstarter Project

Some friends and I have written a children's picture book about the ideas of tradeoffs and opportunity costs. We are in the process of having illustrations done and it is quite an expensive process. In order to offset some of these costs to keep the price of the book low, we are considering running a kickstarter campaign in order to raise the funds.

The book is about Johnny (named after John Maynard Keynes a famous economist), and the book would focus on many decisions he makes. His thought process during these decisions are explored in the book. Please see the cover draft below, and some sample passages from the children's picture book.

3/5/12

Production efficiency and opportunity cost of the American Clean Energy and Security Act of 2009

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Production efficiency and opportunity cost of the American Clean Energy and Security Act of 2009

This economics post discusses a common question going around the web.  I am not aware of any "right" answer, so feel free to comment and contribute below:

“If the American Clean Energy and Security Act of 2009 becomes law, it will limit greenhouse gas emissions from electricity generation and require electricity producers to generate a minimum percentage of power using renewable fuels. Some of the rights to emit will be auctioned. The Congressional Budget Office estimates that the government will receive $846 billion from auctions and will spend $821 billion on incentive programs and compensation for higher energy prices. Electricity producers are projected to spend $208 million a year to comply with the new rules.”

Will this new law achieve production efficiency?