We all banter about terms like the Keynesian, Chicago and Austrian schools of economics. I thought it might be informative to share this little quiz. Since football is finished, here is your weekend diversion.
For the record, I am a B+ Austrian.
Ja Wohl!
Teri Lussier says:
>Keynesian, Chicago and Austrian schools of economics.
I’m clueless about all that, but, Tom, whatever it is, I just scored 100%.
::should I admit that out loud?::
February 19, 2010 — 11:59 am
Sean Purcell says:
I scored 93%, which surprised me. I assumed I’d be closer to 100%. Speaking of which: way to go Teri… you little capitalist you.
February 19, 2010 — 1:20 pm
Teri Lussier says:
>Teri… you little capitalist you.
100% would make me a BIG capitalist, right?
Oh, and I am Austrian. On my dad’s side. 😉
February 19, 2010 — 2:07 pm
James Wheelock says:
I came in as a C- but I guess that should not be a surprise since I feel that people when left to tend to their own needs and wants surprisingly frequently leads to an efficient out come.
However, this is not always the case and leaves us with externalities, which are cases were either a transaction between a buyer and seller does not include all of the social costs of the transaction or were the benefit to society as a whole is benefited in a larger amount than the buyer and seller in the transaction.
Great examples of these are education, health care, drugs and booz, and air pollution. With education and health care being examples of cases when society is benefited more than just the benefit received by the buyer and seller in the transaction. That leaves air pollution and drugs and booze usage as examples were all the costs to society are not included in the transaction between the buyer and seller.
I believe that when markets fail in these circumstances a good method of handling the rebalacing of these issues is to tax those markets that do not include all the costs of production and consumption and then supplement the markets that provide more value to society than the benefits received by the buyer and seller.
March 2, 2010 — 1:41 am