Profits, Entrepreneurs, and the Last Class ( December 12, 2011 )

Profits: Total revenues- total costs
What is the wage? It is just a contract that says what people will excatly be ding? Wage is to eliminate uncertainty
What is interest? It is a price that comes from the supply and demand of the market of bankable funds.
They want something today they would eventually get later. The persuasion is the interest.

Rachel, Professor Rizzo's Wife

• 30,000 usage as a secretary, owns a building $6,000 a year - owns saving cost at bank with $23,000, pays 10% interest.
• She then opens a shop - works it for self, uses for own building, sells her savings, borrows $20,000 for ovens.

Economic Profit: Total revenue-total explicit costs - Total implicit cost = $1,700
If you make the choice of being an entrapeneur, then you'll be $1,7000 richer.
If negative profit, less richer because the decision made to be an entrepreneur is not a good deal.
The change of that quantity of the pizza market has to do with the Zar. Raises the wages of the workers until that number goes away.
Profits for selling, but things change rapidly. Expensive 10 restrict competition. Prevent competition by foreign countries. Loses are key. Make people pay for sucking.
Loses destroys resources.

Curing and the ideals of a Entrepreneaur ( December 9th, 2011 )

In the market who is it who helps the people? The politicians and entreprenaurs? Who gets the profits and how does it help the people or buyers?

Is it bad thing that people are paid for helping others find a cure for a certain type of disease? Well, it would obviously be paid for since society graces the provider of a cure in order to multiply and cure others for the same benefit. Why would people not make money for curing people? Why shouldn't someone make a profit for having to save someone's life? So if you have to cure someone, the distribution to cure others is based on the entrepreneurs.

 

In order to do that and be successful at it, you have to figure out what people have to value and how it will benefit themselves as well as other people. The profitability rate is equal to the rental rate and the appreciate minus the interest rate.

The Sumptuary Manifesto (December 9th, 2011)

 Oh man, this article was interesting. The article in a nutshell for later reference is discussing how there are rules that must be followed in the sumptuary society however they are completely inverse of our own society, such as possessions as stuff in order to serve sharing as a commodity. It is everything base off of what we believe to be very totalitarian and unjust.

If this idea were still to be applied in today's society, is it possible for society to make it morally right by all disobeyed the set of rules? Would the entire idea become the central theme for a rebellion over the government's rules?

The rules were listing things that are against the law, things that should not be over consumed, and demands. There was a deliberate sign where others could not do to others because of the power they possess over a specific location of a city.

EWOT - The end of Mozilla

Earlier this week, I was listening to a podcast discussing the end of Mozilla Firefox, the browser used in many computers to supplement Internet Explorer for it's fast compact interface and high ordinance on traffic when using the Internet. It is also used as a customizable HUB to add the different add-ons that help you personalize and characterizes what you like when experiencing the internet. Earlier this week, there was an article that mentioned that Mozilla might have no revenue for users using their web browser and they might discontinue the web browser due to the changes of Google. You see, Google as I always saw it, is Skynet. The company controls many of our everyday tools such as our smartphones and the way we research. But since the release of Google Chrome, we would have to switch from our beloved Mozilla to Google's new system since the revenue Mozilla gains from Google will not be sued in their search engine anymore or on the interface Firefox provides. Google maintained a company as strong as Firefox, which to me is surprising because now that Google is capable to compete and gain profit for allowing Google Chrome for users on both Mac and Windows computers, the revenue for the companies are not shared and Google will be capitalizing more and more as weeks go on. It's not a bad change but I found it shocking for a company to pull a wild card on systems that they helped provide and are capitalizing with their own products. Hello Skynet.

Economic Incudence and and the Elasticity of Supply and Demand (December 7th, 2011)

Legal Impudence: Sale taxes (Buyers) + Who will say days

Economic Impudence: Who really pays
The Initial Price for buyers is 3.00 and sellers is 3.00.
The Final Price for buyers is 2.75 and sellers is 2.75.
Tax feed is buyers for 1.00 and sellers have none.
The economic burden or the real cost for buyers is .75 due to tax and sellers for 0.25.

Tax rates that are too high and income tax is too low. None of this is being shown in graphs, rather just for the well being. Which side of the marker is effected? Buyers!

price sellers end up keeping and buyers need to give to taxes. Raise taxes and the problem gets worst.
Econmic liability for taxes is completely independent to whom eats it.
Firms and workers split of that tax. There is no share of the burden and if it is all the time.
Elasticity of supply and demand, meaning that it will be by three, so that if there are higher labor and many workers are not sensitive to change to wages. Social security taxes will kill you, not the yearly taxes.

Who legally has to pay, it is the legal elasticity of demand and supply who allocates the pay. Buyers going to get a bigger burden of paying the excess tax. Most taxes however are paid by sellers. Subsidizes by 1.00 of the gasoline from the refiner; supply would shift out and be less for us. Refiners get 3.45 (referring to the graphs on the written paper., oil gets 80%, 20% to buyers. It is the relative supply and demand elasticity, nothing else. Buyers and sellers are better off but not the market.

The Economic Indicence of Supply + Demand Changes

Making something illegal does not get rid of them. Drugs tend to be stranger when illegal. It is costly to make something illegal and it is a waste of time. It is resistant to change as 33 billion get arrested to 1.5million. More people are in prison for drugs than people in prison for other reasons. Prices for cocaine have decreased. Marginal cost of going to jail is dropping to zero after two strikes.
Excise tax - The legal liability for tax is on the seller. But who is baring the burden?
$3.75 to $4.00 costs to buyers is 0.75 on the economic burden.
$3.75 pay money costs to sellers = 3-2.75 = $0.25

Prices does not increase by the amount of the tax. Taxes can be bad because they prevent trascations from happening. Costs of IRS is also costly to monitor, enforce, tax, cheating the taxes is bad, wasting time, and raising taxes.

EWOT - The Act of Freezing

For a college student, every dollar counts. We are surrounded by loans and the food on campus brings us great sadness and temptation to buy from other locations. But would students go their way to spend for three pieces of clothing that are equivalent to the warmth of a coat? Absolutely not, that sounds silly. But wouldn't this be ideal, in terms of saving money? Buying from Walmart would save students money from buying expensive coats and sweaters for the holiday season. But that wouldn't help other companies like J.Crew. More so, students would look generic and not be have a specific flare from each other, ranging from culture to attractive flaunts.

Students, such as I, would be willing to allocate all their resources to keeping themselves warm and having some type of class with their outfits. This not only benefits the market, but it helps us demonstrate to the world who we are and how we keep ourselves warm before the artic reigns over the University in January.

Golf Market ( December 2nd, 2011 )

The Golf course in a nut shell was how if you want tickets, you have to spend more money on them in order to get it. If you want to have the ticket for a cheaper price, then tough luck because the guy who is willing to pay more money will have a better opportunity making a purchase. It is kind of an unfair system that the NY Golf Shuttle uses, since it seems unfair for those who want to purchase tickets to see their pro golfers duke it out. But it also seems good since they are willing to allocate the tickets to someone who is willing to buy it for a higher cost. It would be hard to regulate this system since the general public has a range how much they would pay to watch a game of Golf. This brings up the demand to watch the game higher since the supply of seating can be ranged depending on how much they would allocate to see a game. A very interesting article, indeed.

Price Floor, Income Taxes, and Legalizing Drugs ( December 2nd, 2011 )

Price Floor is a good example for the minimum wage. Since there is more people working for that firm, they would want a certain amount needed to produce the maximum for the job, and the rest of the workers would be a surplus. The next workers that they would have to get would have to become better workers than the previous ones hired due the expectations from workers increasing.

• It allows firms to hire less workers since it costs more and more to hire each one. Workers would then get less employed and more would want to be hired but less would want the opportunity to.

It would result to the same outcomes as the price ceiling.
The better option is to tax workers and earn income tax instead of using the minimum wage for the workers.

Legalizing the drugs would not reduce the drugs produced on a smaller level. It would become multi scaled where markets and firms would try to produce them to buyers in different ways that they can appreciate the drugs. Yes, it would be beneficial for the market as a whole and eliminate the black market of illegal drugs but distribution of harmful drugs can have a dangerous effect on young ones who can be exposed to these drugs.

Rent Control and Outcomes of Price Ceiling ( November 30th, 2011 )

Price Control leads to less apartments that are available.
The problem with that is that there is more of a demand for apartments.

• There is a shortage of apartments and thus more of them have to either be built with allocated resources from sellers or sell them at a higher price in order to catch the surplus of apartments and meet the margin of supply and demand.

The outcomes of price ceilings is to reduce the availability of apartments and make them harder to  acquire. So they either had to lower the quality to make them affordable for others or try to fix it so that it would be dealt with at a regular price to the public.

• The black market emerged and bribes were created because of it. People had bids in order to jeopardize the way to obtain apartments, especially in New York City.

• The problem with that was the rise of mid-allocation. Other neighborhoods that were not controller were effected by this.

Fairness and rights played a strong role in the distribution of selling the apartments. Discrimination was also a strong role, where it provided a social goods to others. It made other apartments available and less people were available from the market due to that.
There was however in need of monitoring and enforcement, which costs money and was bad for society as a whole. Yet it was not available at the time because monitoring would cost money and it would be bad for society a whole.

Reminds me of the article where students worked together to find out where they would live on campus (this was last week's article).

Planners and Meeting the Margin ( November 28th, 2011 )

Last class, only the price he sees in order to make good decisions. What is the difference of the trial and error from the government versus the market? Just hypothetical. We need to get good outcomes that the market was not capable of doing.

30 bucks to pay for making a guitar would be bad. It is better below.
What is the problem making it for S4? Marginal cost of the 25$ dollars. When he makes a guitar the world is poorer by 25.
S2 costs 15 dollars, there is a 10 dollar allocation on the table. S2 and S4 would have to get together and split the cost to make the world richer.
Everyone can do better off if D4 gets his guitar and gives it to D2. The world is not hurt at all. D4 and S2 trading would make the world richer. Lie that you made the bike and I'll give you half the cut from it.

After 15 minutes of story telling,
Planners do not have enough information because it is changing rapidly. They forget what and where we need it. The only way to live in this complex world is to disperse/decentralize ideas the best way possible. Allowing different states would work in a separate ways without the federal governments approval.

Some properties of EQ.
Consider a stylized economy with 5 consumers and 5 selllers, not necessarily distinct.

Rent control, Price ceilings
Once you do a nice thing, you do a moral obligation to do it all the time.
Beat the competition out by checking out the obitenuary from the NY Times.

Markets with Knowledge (November 25th, 2011)

Thermostat is a good marketing device of knowledge. Centralized knowledge is good but uncentralized knowledge can be useful as well depending on how it is used. How prices can be signals to adjust to clear the market, depending if the price rices or falls depending on how people actually get it.
There is more than just things on the shelves;
Expectations are rapidly changing knowing in my life that these things shall always be on the shelves.
Titanium market;
20 million pounds of titanium, process if the prices were higher from 20 dollars per ton to 30 dollars a ton, then customers that use titanium would want to buy less, but how much less? It depends on how easy it is to do without titanium. Are there any good substitutes?
Wood or thin headed clubs that work wells, but it all depends on how etiquette it would be for all of it. What about digging tons of titanium? Depends on how expensive it will be to get the titanium from the ground. The shape of the supply curve changes from how it is being dug from the ground.

Demand curve will be flat if there is a change in the supply curve. If a price is at 25, then it would not be sustained because there would be a surplus and it would be brought down to 20. Suppose, Titanium can allow them to run on higher speed with a less frequency noise from passengers. Instead of it being 10 it would change to 20 millions.

Economic problem; there is not enough titanium to go around. Quantity demand would go from 16 and 10, which is a shortage. Identity the potential parties and work some type of solution. How do these things get solved? Higher a titanium Zared? What would they ahve to know to solve the type of problems?

LOTS OF STUFF THEY DID NOT KNOW IN A MILLION LIFETIMES. To solve this problem, answer the question, how much is the extra cost to get titanium? how to fill the paperwork? Labor costs? Environmental damage? First ton would happen, how would it change for the second ton? How do you store it all? It's very difficult.

Cut back as the demand curve when someone else changes in the market. New entrances come into the market, the demand curve is still the same for the consumer. The market price changes from 20 to 25, the quantity demand will be reduced by 8, so the change in quantity is equal to 2. The price is higher, so would allow others to find more units of titanium and how many producers respond to the change.How do engineers respond to it? At the intial price, they wanted 6, but they don't get it all, so they know that they will get 4 units. So the quantity change from 2 to 4, is then 2. Adding them up will be 6. 6 billion pounds are fitted away. Both came about when the prices changes. At 6 and 20, now 5 at 25 when it changes. (review video from Nov. 24th, 2011 for further information).

Euvolutionary Exchange (November 25th, 2011)

The Duke should have never allowed the lottery system to pass if they would have gotten angry by students exchanging money. They should have just kept the monetary system in the beginning since it has been working for student dorming since they couldn't allow the system to work. The Duke should have also allowed for it to continue to happen because they know that people are subjective to where they would like to live on campus sometimes. Then and there, that is when the students worked together in order to fix on their goals to where they would like to live on campus.

EWOT - "The Bank Account Merchant"

Today as I was buying a winter coat, I noticed something very odd. When the website I purchased my item from, it gave me an error. Not only did it inform me of this error, it proceeded to take money from my bank account as if the purchase was completed. I proceeded to talk to customer service and my bank account and both can agree that the "merchant" has yet to review the transaction and remove it from the history of my bank account. But this as many things in life, take a couple of business days for it to happen. By waiting however, one loses the flavor of even trying to buying online because they end up losing the money from their bank account to use for other things such as buy groceries. I could understand that without this transaction, the store can easily take more from my bank account than I permit them to get however the way they allow the card transaction first without completely knowing if it would give shoppers an error. Will I continue to buy online however? Yes I will because moving from my buzzem to get to a store is much more of a cost than having my order sent to my door with just a click away.

Surplus and Shortage; Supply and Demand (November 21st, 2011)

Supply and Demand curve in the market of acoustics:
Quantity of demand = Quantity of supply
Demand captures willingness and ability to pay.
This is where it is coordinated and how people's behaviors will to change when the prices changes.

Two questions:
How does each half of the market respond?

• Buyers and Sellers

What plans are satisfied?

• Buyers and Sellers

If the quantity is higher, when prices goes up, quantity demand decreases. Who's plan does this satisfy? Buyers!
They want the price to be high, they can try to slowly meet the demand. Given the price, they would not change the behavior.
At p= $900, quantity supply > quantity demand, by 400 sales.
When quantity supply exceeds the quantity demand does not expect the surplus, it only does at a specific price.
Quantity demand is higher, quantity price is lowered. Sellers benefit from it and buyers do not.
At $300, quantity demand > quantity supply by 400 guitars. The equilibrium point is the middle point of supply and demand.

When prices are increasing, shortages are being eliminated. Low prices can be relatively unscarse. Scarcity is the relative abundance of a good.

Two types of equilibrium:
If wood falls, supply will shift.
If electric guitars increase, demand will shift.

Pictures and their Significant meaning (November 18th, 2011)

The first image could be described as a way for Americans to not spend products if they are going to be wasteful. This is actually something that I disagree with because whatever it bought in the market will always benefit the economy. But in the poster it is almost saying that if you run with buying items to be wasteful than your only helping the enemy because they're are being less wasteful and using that to benefit their production and economy. The enemy perhaps was discussing the Soviet Union.

The second image describes a poster demonstrating to society should not buy cars because they would be riding with Hitler. It decreases the demand for cars and demonstrates that they would rather not have so many people using cars at the money where they could all share passenger seats. This could also be due to the supply of the cars in the United States.

The last one is pretty simple. It basically tells others to be honest to one another and try to depend themselves as reliable sources.

Rationizing under the Price System ( November 18th, 2011)

• How does it channel competition?
• Destructive
• Market economy to give goods to people. There would have been no advantage from the producers to the apples.
• Rights cannot because duties and strive as someone you don't want to be.
• Once a universal bureaucracy, you cannot understand how it will impact providers. If people want more, how will you bring "more" to everyone.
• Provide the care? No, the opposite. No investments on diagnostics and medical beds based upon that. Figured out to find the supply as there is an increase ind demand. 
• Right on ration, you allow people to do what they would possibly do to obtain a good.
• You don't have to ask in order for people to run on incentives.
• There is no vaccine policeman; we can allocate our resources ourselves.
• Moral succession does not work in society. Cheating on his exam to take the exam earlier to give it to another is to have the opportunity to get an A. Big mistake.
• Reallocation of the resources; without the price system, there is no way (signal) to demonstrate how to know who needs the water more than anyone else.
• Low demand where Ive live, high demand elsewhere to get them to gain from transaction.
• Somebody else values it more than now than before, morally bankrupt idea.
• Banning kidneys, black market is 100,000 more.
• What should determine who gets that is the safety net institutions.
• Rich and poor are no alike
• Inequality is greater today than WW1
• Is it possible to make health care independent?
• Is it always desirable?
• Why do people insit on talking about it?
• Rationalizing mechanisms and the advantages people retain when done to a price system?

 Importance of Money:
Exchanges the transaction
Leizure and the time lost
The double coincidence of wants
1/10th of a Guitar for a concert ticket.

Supply Rationing Criteria (November 16th, 2011)

Supply Rationing Criteria is what businesses can chargewhat other people value. Five fishes for 12 people.

1. Needs- Appeals instinctively but very vague because it has a who and a why.
2. Queue - first come first served. Still costly with lines.
3. The Lottery- Is it fair? It is easy to rig and may or may not get it.
4. Equal Shoves - Pure communism at a low cost or straight forward
5. Might makes Right - Fight and medical costs and planning is hard
6. Merit- deserves them for beauty, smart, and difficulty on accident.

Need is very costly. The people who need it will need to get it
The Higher the line, the higher the price

Evaluating the Rationing Mechanisms:
1) Where competition came from = scarcity. The compeititon is not in capitalism or communism.
2) Nature of competition and the destructive effort hasn't improved society from zero-sum
The constructive effort of price to produce and improve society. Still having the money if you lose and it is at a lot richer place.
What are incentives for producers to make delivery more valuable?

Supply (November 14th, 2011)

Supply Schedule depends on

1. Marginnal Cost
2. Total Cost
3. Total Revenues
4. Producer Surplus (Profits)

^ Each point is what you value at the margin for each burrito.

Marginal Cost vs. Average Cost

Supply vs. Quantity Supplied (Drawn Graphs)

Why is it curved up? It cost more to make more, which is the Law of Supply. The law of supply is not true since it has diminishing return production and spending resources.
Markets increase, capital prices increases to produce burritos.
Supply is a relationship, not a number. Particular part on the curve and it has a marginal oppurtunity cost.
Total cost is Marginal Cost 1 + Marginal Cost 2, which equals the total cost.
The total revenue is price times quantity.
Producer surplus is total revenue minus total cost, which makes profit!
Diminishing returns production
Second one counts more than the first one.

Impacts on the supply shift.
Any change in factor prices. (rent falls and it is cheaper to produce.)
Expectations matters more for the producers than consumers.
Any improvement in technology will increase the prices for producers but decrease them for consumers. If everyone is selling Pizza, instead of selling burritos. Sell pizza since it's compositional. The supply curve shifts.
n is equal to percent change in quantity supplied over the percent change of price on the good.

Market demand and market supply
Flatter or elastic
Easier to aggro supply curve. Sellers they always ask the average cost versus marginal cost to calculator price for burritos.
Prices are how we ration goods in the economy.

EWOT: A Deconstruction of Communication and Dishonesty

Ever since I entered this school, I knew that it would be in my interest to make as many friends as possible. From there on, it evolved to meeting many of my colleagues as possible. And now, it's an improved filter by meeting acquaintances who are trying to reach the common goal; get an outstanding GPA for Graduate School. These transitions did not morph overnight. Universities have becomes the students deconstruction of reality. What I'm trying to mention is that subtly, I believe people do not notice how much of an impact each one of us has on each other by communication.
Without communication, the goal of approaching an A in economics would be discrete. I don't want to beat a dead horse by saying this but the dishonesty for the exams is a prime example that has not escaped my mind. By cheating on the exam, one disrupts his communication with everyone and takes it upon himself to anchor the class into a pile driver.  Not only do we miss a class of recitation but we all placed under suspicion for cheating which can be counter intuitive with learning Economics 108. Just as Professor Rizzo said in one of his earlier lectures," self sufficiency shall only be your prime downfall to poverty." Except in this case there would be a sticky note on top of that quote saying, "unless you are a group of students who are pursuing the common goal of acing Rizzo's Economics class."

The Perfectly Inelastic Unicorn ( November 11, 2011)

Are there any substitutes at all for diabetes? For certain cases, better diet and better workout is the perfect substitution or prayer. Regardless of the price, you are going to buy it. The ability to want and get it is demand.
Are you going to stock up if you have the chance to be getting diabetes? At one point, yes, so demand curves will not go up and down. The inelastic curve is the same as the unicorn, if it is a myth. People are willing to spend on the market for health care.

The method of distribution and splitting the check, we would spend more on health care and have less on it in the USA. We do everything and everything for health care. Well no, if we are desperate then we would go on a high diet. There is a substitute for everything.

Income elasticity of demand:
% change in Quality Demand/ Change in Income
Normal when >0 and inferior when <0, how much my consumption changes when my income changes.

Income and Consumption vs. Prices and Consumption

Cross-Price Elasticity of Burritos and Pizza
When prices goes up, burritos goes up, pizza goes up
Subsitutes vs. complements

A small change in supply. Supply of Japanese swords increase after advertisement. If you are going to make something, then others will want it. So supply is part of the price. More likely to ride the bus than airplanes. Rizzo values his time more so the time cost is the oppurtunity cost of planes vs. the buses.

Whare are costs?
They are actions; they are tired to an action, not a thing.
To whom; Who is hearing the tradeoff?

Why does it cost more for a bicycle thana a picnic table?
Prices going to the bicycle is due to the employee is highly valued to the one that makes the picnic table.


Cutting grass by hand might be cheaper than using sheers or a lawn mower. To manufacturing the bike is cheap but the metal can be built somewhere else.
The people will have augmentations since they can be talented in such jobs.

Concepts for Supply Curves: Cost + Supply
Quantity Supplied: Amount of a good firms are willing to produce at a particular price.
Law of Supply: When the prices of a good rises, the seller of a good will make more.

The Theory in Leizure Class ( November 8th, 2011)

The reading discussed the perspectives of two different types of classes, one that was superior and the other was inferior. The inferior class saw the opportunity to work as a way to be happy to have an income come to his family and a privilege to be doing something with his life rather than being a wasted life entity. The other one sees that if you work under someone, it almost seems like your almost being a slave to them. They have to act to everything that they ask for without a sense of an option because it is the only way they could retain money from working there. It is almost as if they have no freedom in the work that they are stationed. But I mean that can also be a good thing. As mentioned in the book, it can also be that if you work under someone and something happens where you were defective when checking products or doing your job in general, the company suffers from it not you specifically.
The other part of the article discussed how you have a lot of money you are not seen as a rich person because your not spending the money or using it at any expenditure. Unless you buy things with the money that you gain there is no reason to call anyone rich because they are only saving their money, not displaying it or flaunting it.

EWOT: MLG and the Middle Man (November 8th, 2011)

MLG is an abbreviation for Major League Gaming, (yes I know, "very geeky"). Aside from the obvious, it has become a strong phenomena around the world, most including China, Japan, Korea, and the United States. People all around the world come to play together for a prize pool. MLG in general is a advertisement for people to come and participate in events that would allow sellers, or gaming companies to sponsor for events such as these. MLG and it's location is the middleman throughout all transactions since it brings buyers or gamers with specialized desires or talents for these games and brings them together with sellers. This phenomena as I said before is growing and until today did I realize how well it is for the Economy. This is their job so their amount of labor is actually put into playing a video game that can be mind blowing boring but it will earn them money for winning or even participating in the events. This is a innovation with technology since before there wasn't anything of this sort until MLG got introduced in 2002 by having players play a combat shooting game among one another to see who would come on top as the better fighter. Anyways, I know this was a probably a geeky EWOT but none the less it is a EWOT. I just realized how amazing it is to the economy right now and not a couple of years ago when I participated in one of the events.

Elasticity (November 9th, 2011)

Elasticity is the slope of demand. What impacts elasticity is:

1. Time
2. Budget
3. Substitution

Some people will still buy to the same amount at a higher price because there might not be a substitution for it.
Law of Demand says that over the entire range of prices, it works.
This is a too high price eventually.
Who are all the interested parties? People or businesses.
then why don't we produce changes in the large amounts? Well, because they know that some people will stop. Which has a higher elasticity?

From Minivan to the Red Form Minivan, there are more substitutes. The more narrow the product, the substitutes increases. Demand elasticity in the highest because there are more substitutes.
|n| < 1 is inelastic, people are not sensitive to price.
|n| = 1 unit elastic
|n| > 1 elastic peopel are sensitive to price

Total recipients= P x Q:
if P goes up, Q goes down and vise versa.

In the situation where A has $500 dollars and B has $320 dollars, the consumers are elastic because they are sensitive to price. Expenditures are not the same as costs.

From Individuals to Market Demand (November 7th, 2011)

Horizontal submation of total quantity demand. They will be more "elastic" when they are bought together. Change from macro demand to aggro-demand when asking the public.

Comparative Statics
Quality demand and what things impact how much we buy?

• Prices of the good in question
• "Other Stuff"

Anytime it depends on the changes, it will be the changes in demand, not changing in the quantity demand.
Changes the way people think about prices:
[Ability]

1. Income
2. Prices of Other Things

[Willingness]

1. Expectations
2. Taste Might Change
3. Number of Participants

Demands can shift in and out depends on if the demand increases or decreased and whether or not he is willing to get more of the burritos for a certain amount.

Normal Goods
When income increases, quality demand increases.
"Inferior" then quantity demand will fall. Prefrences are subjective. More of the things you like.
Substitutions (Replacement):
When the price of substitution good increases, price of burritos increases.
There is no natural paring of goods. We only substitute when viewed on the relationship of the two.
Complements (Go together):
Prices of hot sauce goes up, the decrease in consumption of burritos because f the relationship. Goods are tied together.

• Tastes and how you view things will impact the demand curves.
• If a storm occurs, the expectations is that since everyone will be getting wood and such, you may respond today to buy it.
• Expectations of the prices of substitutes may have also changed.

Elasticity: How much more!

• Demand for pencils are inelastic.
• Demand for euro vacations are elastic.
• We can measure elasticity with anything. We can also discuss elasticity through that.

Own Price Elasticity of Demand:
(% Change in Quantity Demand)/ % (Change in Price of Burritos)

EWOT: Rebuilding Pyramids, Mount Rushmore, The Colosseum (November 4th, 2011)

As I was walking, I started to think about the Roman Colosseum and how it a very strong structure although made by simple things such as rocks and other types of solids that were easily or creatively discovered in the past. I was thinking again about how much of a landmark it is now and how it would be rude for the present time to modernize the Colosseum. But how will that effect the general public and for that matter the economy? Well first society would obviously be angered that national landmarks are being taken down from historical times to be renovated, yet it is only to help preserve it. More so, if it were to be renovated, the economy would probably benefit from it because the attraction of tourist will not only pay for the amount used in viewing the monuments but pay others for visiting it over again with the family. It will not only update what looks like bad location where plays were demonstrated in Italy to a nice and stronger landmark that will have no possibility of decaying throughout time and diminishing from it's strong concrete structure to a pile of rubble.

Demand (November 4th, 2011)

What can be obtained from the simple chart?
Marginal values
Total Expenditures
Total Value
Buyers Net Gains which counts as the consumer surplus.

Why do we have to behave this way?
Wealth Effects
Substitution Availability
Diminishing Marginal Utility

When burritos are zero, they would be used for other ideas. You would get less of a trade off if you play baseball with a burrito.
Better to the environment to feed it to your dogs

Markets force you to consider the values of everyone else. Demand curves never go up, they act as peaks at a slope downward. Price comes at some determination and behavior of the curve.

Wealth Effects, as price goes up, you become poorer.
Less income on anything else. Increasing everything will be worst for the poor since they have no money.

Substitution Availability is buying coal or oil is bad since they increase prices. Now they will increase in your incentives for that. The prices for traffic cops since they take an advantage on our choices.

Diminishing marginal Utility
Each unit that you purchase will give you less satisfaction. I wouldn't be paying enough to get the 5th slice of pizza. You would have to go out of your way to get that type of luxury that is unneeded.

POW Camp ( November 4th, 2011 )

The article discussed how the economies are starting by selling products like cigarettes and small goods in order to make a transaction at the POW camps. Goods were being traded but there was no amount for that money to be accounted for. It was based on products and what others viewed with as their value of it.The development of the economy was very different from other emerging economies. Since there were normal markets that had developed around the use of money, it was not as necessary in order to become a strong economy. The example was used in the POW camps to explain how there were small materials used in a market economy and build a economy all around it.

The Middleman and Demand (November 2nd, 2011)

The middle man that has a comparative advantage over something. Unique ability to bring buyers and sellers together. Wegmans is the middleman. Wegmans is going on their transactions a lot less and cheaper. They bridge the people together. Exchanges of porperty rights to things.

Demand
Exchange can occur in small groups and specific information have at that place and time.
Where does price come from? Price is information. Signals to buyers and sellers to what is scarce. This is what society values.

Markets are any group of buyers and sellers. There is also potential. Any decentralized, unorganized interaction between buyers and sellers. When you have a market, there is a production of money prices and non money prices that produce order. Order just means that stuff is on the shelves. The 2006 football crisis and it did not happen because of order.

Free health care is not free. In the United Kingdom, the 85% have to wait 3 months but for us we don't, we have 0%.

Buyers have "demanders" who have goods as households. They factor firms. Well the seller are the goods of the firms, and the factor is the households.

Demand is a relationship of the amount you wish to obtain and the sacrifices you make to get there. The quantitative demand is the amount of the good that buyers are willing to be able to consume at a particular price.

Trade Offs and the Trasactional Cost ( October 31st, 2011 )

There is a lot of people out there that can deliver that good and there is a lot of people that can have that good.

This is placed on trade offs and the bases that others have items or a use that can be viewed beneficial to others through subjective thoughts or opinions.

This is also based on the kidneys idea from Recitation. If the trade off can also value that of organs for others to use to survive at a longer time, would it be acceptable to trade a kidney for something of that of the same value.

People work for others to get their needs. For example, if others are willing to spend money on something of that of the predicted value, there is a profit that must be gained from the buyer and the seller, which is in between or bias. That is what a transnational cost does to the economy, in which it benefits the price of items sold.

Trade Deficient - Oppurtunity Cost (October 28th, 2011)

What does "Made in China" mean?

• It makes up 2.7% of US consumer spending.
•  Only 1.2% reflects that cost of the imported goods.
• The U.S. content of "made of china" is about 55%.

It is all based on oppurtunity cost.
If the trade deficit should be true, then the trade surpass should make more jobs? Actually, no. Agriculture jobs have declined.
Why doesn't trade deficient destroy jobs?

1. The identity: You pay with your imports for your exports.
2. When you specialize, you get richer: Income Effect.

Round about ways:

• He lectures, gets money, pays for food, paying Wegmans.
• A list of factors are plausible to impact the trade.
• It allows trade to be plausible.

That frees up their budget (overtime the impact of income for food was changed and has freed up.)
But what is the trade deficient? What we spoke about is the trade account or current account?
USA buys assets: Capital account balance has skyrocketed on surplus. People have been buying shares and entrepreneurs buying buildings.
So long as we maintain attractive to foreign countries, we will remain strong.

By tearing a dollar, you are committing a felony. You hurt the American economy. No matter what, as long as you take the dollar way, the United States will always get it right back, which is good but it is also a good thing based on trade deficit.

Trade Statistics (October 26, 2011)

1) "We aren't getting better jobs from losing the poor one."
The people who would lose their jobs due to mechs. There is a small portion of those people who will not be a bad time because the United States allows trade. Remember, self sufficiency is make us poorer.
Trade adjustments have not been able to sustain training future possible jobs, such as a windmill technicians. Instead they were hit with solar energy technician where they can't use their skills.
If jobs are opportunity of being out busted, then the wage will definitely be increasing.
Technology is not a part of why we stop losing jobs because they all benefit us. Trade is more of a reason why people don't have their jobs.
The economy shifts to the skills that we retain in school. It is not fixed so everyone will have a job but the offering is still there. Job opportunities shall always be there for us to choose.
Trade statistics are MEANINGLESS!
From the people who work with mechs in factories now, only 9% are part of manufacturing jobs in 2009.
3) Manufacturing outputs produced more things now than we have ever have before, even China. So is America being "hollowed out" is bullshit.
Shouldn't "the economy" put people ahead in profits? It does!

• 1985: USA ATMS: 60,000 ATMS and 48,500 Tellers
• 2002: USA has 352,000 ATMS and 527,000 tellers.

ATMs compliment it instead of replace workers. It is debatable on what technology can do since it can compliments or help produce faster.
Via Tan Fietcher: Manufacturing is low, but as an economist he never mentioned why it is a bad thing. He also discusses that if society cuts in consumption, but the efficient will and shall not fall. He is incorrect.

EWOT: Comparative Roommates

Lately, I tried to take the idea of two different entities and comparing how they help one another to allow a economic sustainability. Well, in my own room, I started to think about how I sustain both me and my roommate with equal trades. Although it sounds boring, I love water (and liquor) but mostly water. I could drink water over anything and it's hard to live in the Quad without a water fountain nearby to refill a water bottle. So now every three days or so, I buy 3 Liters of water for $2.50. Normally I would drink it on my own but I also feel the need to give some to my roommate since he too would like to quench his thirst. But lately, I've been getting somewhat annoyed that he receives the water for free. So a couple of days ago, I decided that every time I would buy the 3 Liter water bottle and he wanted some to drink, he would have to do two problems of Webwork. Normally it takes about 5 to 10 minutes to finish the problems but if he is capable of doing it, he'll be able to gain access to the water. Since he does not have enough declining left, I think it would be somewhat worth it to do two problems that I have a hard time doing for the access of good quality water in comparison to fountain water, (it tastes like iron) and Wilson Common water, (it's a pain walking back to a cup of water.) Now I have less time to work on the Webwork since I take 15 to 20 minutes to do 2 problems and he has access to water that I bring on my own during the week.

Castrating Animals, Long Live Roquefort, and Rolling Cigars

What Mike Rowe in his conference had also got to me as well. Right now, I'm a student studying at a private college for a dream of being a Chemical Engineer. Yet I acknowledge those who are studying liberal arts to be some kind of a joke. Even more so, those who don't even try to attend college. It is not predominately a bad choice to continue getting an education because of the harsh difficulty of getting a job in the United States. But what I also realized is how we under appreciate those who do things that not only make them happy but also allow us to live easier lifestyles. The presumption of living a dream is interesting to me. We all work hard to do what we want to do but never take a step back and allow ourselves to see if that truly brings happiness upon ourselves. Just like the article of rolling cigars, we don't always choose what we want to do with life, we sometimes allow our passion take us to where we want. We allow society to predestine our roles sometimes and never identify for ourselves where we would like to pursue. The same goes for the Roquefort where she said that it would be difficult to get Roquefort for our the customers but it would also be difficult to allow for us to have a choice. We would allow our government to make the choices for us and not allow what we desire to make those choices in the long run. Restrictions and containment; they both suck.

Comparative Advantage (October 24th, 2011)

(Drawn graphs of Rochester and Cornell: Rochester makes 10 glasses of wine and 5 cameras, where as Cornell makes 3 glasses of win and 4 cameras.)

Rochester students have an absolute advantage at making cameras and wines. But which of these two universities make it efficient? What is the sacrifice?

Rochester makes 5 cameras for the cost of 10 wine bottles. It costs them 10 wine bottles to make 5 cameras. Therefore, the price of the camera is $2 worth of wine and the price of the wine is $0.50 worth of a camera.

Cornell makes 4 cameras for the cost of 3 wine bottles. They can also make 1 camera for the cost of 3/4th's of a wine bottle. Therefore, the price of a camera is $3/4th the worth of a wine bottle and the price of a wine bottle is $4/3rd worth of a camera.

• Rochester has a "comparative advantage" in making wine over Cornell.
• Comparative Advantage is the ability to produce something without as much of a sacrifice as the other place. What is made is made efficient and cheap in comparison to someone else.
• Nobody can have a comparative advantage over everyone. 

If Rochester initially made 10 wine bottles and 0 cameras and Cornell made 0 wine bottles and 4 cameras and they decided to trade 3 of each, such that Rochester gained 3 cameras from Cornell and Cornell gained 3 wine bottles from Rochester.
Then the final product will be 7 wine bottles and 3 cameras for Rochester and 3 wine bottles and 1 camera for Cornell.

This creates a change in the graph known as the PPF ( Production Possibility Frontier).
Economical sustainability from retaining more of an output. You can pay for your exports with your iimports always!

Individuals are the entities and should not be grouped with vague statements (Rochester is in western New York, so Western New York is good at making wine.) That statement is incorrect.

Failures

1. There is self-sufficiency, which is the road to poverty.
2. Function of productivity in each country, such as the United States and China.
3. Policies that restrict people from trading will make people poorer.

The Boosting Outputs

1.  Workers have been replaed by techonology.
2. What we import today is technologically heavy.
3. High school jobs stay and shall allow jobs to leave the area.
4. The jobs are more pleasent than what it was before.
5. We have lots of skilled laborers.

Property Rights

From the notes posted from Rizzo's lecture, I believe Property Rights is a moral enduing system that is based upon others payment for ownership. It's understandable to note that if someone is making a payment for said set of land that they should do anything with hat set of land that will not conflict with illegal activities. It is also understandable that you have the right to remove those who are on your land or disobey the orders placed on that set of land because it is obviously yours. Private property falls into that category. But I also believe it is based on a moral system throughout society. For example, kids would not try to play on people's lawns because they know that the owner would have them get in trouble no matter how much fun they are having. But what I was also thinking about was when someone decides to put their stuff on a chair beside them to save the space for their friends. Their friend did not pay for the chair so why do we feel the need to find another seat when such predicament comes? What if you leave your own bag to try to do something and end up coming back to the seat being taken away? Based on property rights, is it wrong to take the seat or is it wrong to move the bag? If moving the bag is violating private property, is the seat also an extension of the private property?

EWOT: The Homeless Subway

This week I was thinking about what Rizzo said in one of his lectures about paying to have someone get removed from your side. He then mentioned that how rare it would have been for someone to pay a homeless person to step out of his seat and leave the presence of the giver. In the act of kindness, why don't we apply the same thing to those who play music in the Subway? Although they don't disperse our presence, they certainly are annoy us in a small way. Especially when you're trying to have a conversation with a friend that you are wanting to catch up with and suddenly you're rudely interrupted by a mariachi band or a guy playing the drums. I would make the effort to not only pay them but to tell them never to play on the train again because I know that I'm not the only one feeling that way. Not to stutter confusion but I want the application of giving money not only to be somewhat of a gift to them for begging but a statement from society that we would rather have you play elsewhere less disruptive and where we will not feel wrong for not assisting them from their past failures.

Production Possibility Frontier (October 21th, 2011)

Trade and Exchange
Trades can have technicalities such that a rare ore can be sold for wheat but they can end up making a moon cake and a laptop.

Rizzo did an example with his house being 120 yards and his friend Rich having the same amount of yards. They both have 10 acres of land in which they weed and mow.

• Rizzo takes 80 minutes to weed and mowing takes him 40 minutes which adds up to 120 minutes.
• Rich on the other hand  takes 120 minutes to weed and 120 minutes to mow, which adds up to 240 minutes.

Rich offered to weed 3/4 of Rizzo's driveway if Mike mows  his yard.

• Rizzo will then take 20 minutes to pick weeds from his yard, 40 minutes to weed out the yard of Rich and 40 minutes to mow his yard, which will add up to 100 minutes. 
• Rich will take 120 minutes to weed his yard, and 90 minutes to weed out Rizzo's yard. Since he doesn't need to mow his yard, he ends up using 210 minutes of his life.
• Although unfair because Rizzo takes less than half the time Rich does, it benefits them both because they both gain time from doing the offer.

Production Possibility Frontier
There is 1000 Jibbitz and 2000 Coon Skin Hats. Rizzo can only produce this if he is given the resources, knowledge, and technology.
Properties of PPF's:
1) All points in the cure are achievable.
2) In comparison to Rizzo and Mrs. Rizzo, Rizzo has a absolute advantage over his wife at making Coon Skin Hats but she has an absolute advantage with the Jibbitz.
3) All points outside of the curve are unachievable given the resources, knowledge and technology given to Rizzo.
4) Points on the PPF are "productively efficient" (getting what people want at a low price).
5) Slope There are tradeoffs for hats and Jibbz. The slope is the magnitude of the tradeoff.
6) Change in slope - Law of Diminishing Returns (Increase in opportunity cost).
7) Economic Growth.

1. Resources
2. Technology
3. Trade

Cooperative Advantage

Trade and Exchange (October 19th, 2011)

Once we remove the circle where we started to know everyone, your decisions will be altered. Adding one more student to the class will not change our experience throughout the lecture.

Rizzo had to send legal documents to his mother. Why was he not worried? Well, as a FedEx worker, they are all strangers so the law of large numbers does not exist.

1. FedEx dies this all their time; they employ people to do this as their job.
2. There is no establishment of trust.
3. Faith. Past experience? Well if this is his first time in FedEx he would not know about the feedback loops.

If they fail, they have a negative effect to the company and the competition between the postal service and UPS will increase. This is based on the institutions of good things in society.

Trade & Exchange
Production process - Factors of Production

• Land
• Labor
• Capital
• Physical
• Human

Land: It is not an economic resource unless we put a value under it like Iron Ores.
Labor: Physical and mental abilities of the average body. Just the regular people with no particular skills.
Capital: Physical creation of what we have now with manipulation (iron ore melted to a iron crowbar to help break into things.) Human is augmentations that we can do to make us special such as a special ability or skill.
 
Factors of production is using resources that can obtain a value to it:

• Self sufficiency
• Specialization, Exchange, and Discovery

PSST - Patterns of Sustainable Specialization in Trade
If you do work on your own, you are not doing a economic activity because you are doing it on your own. ie. If Rizzo used three dollars to make a pizza and it cost 15 dollars to buy a pie of pizza, then it would not be beneficial for him to do that because it is not a economic activity. If everyone knew how to do it, they would spend less on buying it.

Specialization and Comparative Management:
Most trade, nothing new is created. So why do we do it? To acquire wealth? Then what is wealth?
Wealth is a subjective and the wealth of nations vary.
Growth occurs when input and stuff are further apart. The exchange only matters when there is something that is valued.

Rizzo sold cards that had more value to the market but had less value to him that the card he obtain from the trade. He obtain the card because the value of the exchange would benefit him in which he would make $7,000 dollars because he would have completed the set. in the long run, he gave someone 200 dollars but he also made a ton of extra money by getting a card that had no value but was important in reaching the profit.

Reciprocal Alturism and the Golden Rule (October 17th, 2011)

The Golden Rule (A need when you are dealing with other people)

• Use as a means to another end. People argue that communism is bad because of their greed but that's not actually true because people are not omniscient. They share ideas and work together to prosper.
• If you try to produce for people, you end up starving. We are encourage to improve ourselves as individuals. Most of the benefits are felt by you but there are other benefits as well. 
• People view the thought of owners considering others to be selfish.

Reciprocal Alturism
In this scenario, Tony gets a kidney from Tina.  Tina, ten years later, her mortgage is bad but gets a donation from the church.

• Shrink tire and location and these seem morally wrong. Consumers think only firms are greedy and yet they hope to do well.
• Pursing the projects that interest you brings new innovation to society. Work together on that project to make it part of existence. You can not know everything and it is too costly to consider it.
• Economic and moral obligations to maximize the benefit of the group.
• Acting kind can be costly to the group.

The Silver Rule is not to do others what you would consider unfair or unjust if they did it to you.

• Use it when you are dealing with strangers. It is okay to be considerable with your own money, not others.
• No such thing is a profit. If you sacrifice profit you may go out of business and running profitable in business requires "love" or better said passion. Socially responsible to maintain profit for you and others. Not enough love to go around and money is always a good thing.
• Relying on strangers is better than friends
• Leave love to friends and transactions to strangers.

EWOT: The Rule of Efficient Pens

Lately in Professor Rizzo's class we discussed the rule of law and efficiency. It is basically when others leave their belongings unattended, we have some sort of notion to leave it alone. This is some sort of value law that states that we will not touch others property without permission. We also should not be rude to one another and try to put it down while you sit on the seat because that spot was somewhat to be reserved. But is that always the case? What about when you borrow a pen from your friend because you left it back in your dormitory. Most of the time you forget to give it back to the friend because you forget it's theirs and not yours. But who's to say you have to give it back to him? Is it just efficient not to give it back to him because he might have the potential to not want the pen back from you? If that's the case, then who's to say who's right and wrong? Is it then wrong to keep the pen from him or should you try to give it back to him because it was his possession to begin with? I am getting off topic from the rule of law and efficiency but I do believe these all apply to the metaphoric law we have hovering around us and the decisions we conduct in society today.

Efficiency and the Rule of Law (October 14th, 2011)

The Zero Sum Fallacy

Where they end up getting their wealth. Producers gets 25 dollars and hour versus a wage of 15 dollars an hour. In Marxism, we all work in our own civets together. Workers can only be exploited by the exploited by the payment but the issue is that it's ironic by markism.

The illustration of the change in shoes and the design of shoes that helped change the price of them compared to others. Just keeping mind of a later day.

The market often doesn't work as well.

• They lack of existance
• Institutions

Buying or seller exerting their power to a buyer or a seller. Prevention of Rizzo to do extreme things when or if he has tenure. Markets work well when there are many decisions and choices for people to make. Insurance market is an example of a lack of a market that has no interaction. Rizzo knows his health conditions based on what he knows about his body bu the insurance company does not.

"Efficiency"
Delivering what people want at the lowest possible cost. What the people wanted. Ridiculous if the school to place their law on not possess items. Their is a behavior when we respect the possessions of others when unattended. To have the law work better, the market that works well is the Rule of Law.
 Racism is not counted and arbitrary. Good laws must be general and not specific. Some countries expect that if you are wealthy, everyone mooches from it.

Inflation
Caused when there is too  much money around. General increase in all countries of the economy of the products. It is not that the price is higher today or any type of products. There is no actual chain reaction to it. We will always strive for more on the payment.
It is inferior and based upon a golden rule ; production to serve the interest of others and not materialistic to ourselves. Who is the moral authority to say? The golden rule is based on thoughtful actions to others as expected to ourselves.

The Case for Contamination

The idea is that by others living in other countries and helping one another through cultural diffusion will allow the advance of civilization as it is today and the economy driven power that the people have and not any type of single being. He expresses the case that most of the people who live in Ghana are capable of expressing different products, models, and agriculture of structures and goods that help countries expand and understand each other. The idea of preserving the country from the idea or limiting the views from other countries would diminish the country as a whole since there will be a decrease in the innovation and production of the countries. This idea of stepping down on countries that pursue ideas through connectivity of thoughts shall be the end to all types of progression. This kind of reminds me of how the United States allowed immigrants from all types of countries to enter the states which helped improve and progress the country substantially.

Unintended Consequences (October 12th, 2011) *No Lecture 10/10/11

1770- Weavers were not paid. It made it so they can advance to capitalistic products. Banning the drugs increased the way it is used because of it's availability in the United States.

Trying to regulate a complex system with simple rules.

• Limited information
• Short horizons (Politicians term time)
• Poor feedback
• Self involving incentives

When regulations push incentives, incentives tends to push back. Higher cost to hire someone with disabilities/race because it would cost more. ie. Rizzo would not hire a black person because he knows that in the long run they will cost more because they will charge for racism on the company. Who are all the interested parties that will respond to rule.

Trade is not a zero sum; "pie fallacy"
If there is a dash between both people, both sides would benefit from it.
No one plans the market system. People work together on it on their own and it's natural. Traders are not necessary. It retards Economic growth. It is going to penalize work, innovations, and payment.
"Stock" Wealth vs. Income "Flow"
Wealth is a stream of income that he can produce throughout the years.
Income is the 535 congressman that have the power with the stroke of a pen.

EWOT: Wilson Day

On Wilson Day, the University of Rochester has the opportunity to allow the students to give back to the community of Rochester by volunteering and helping others try to fix parts of a community. Yet I feel there's something more to it. I feel "volunteering" is a stretch towards Wilson Day. If on Wilson Day, the University of Rochester tries to help the city by volunteering part of their time, who is there to say that part of their time is put to waste. What if Wilson Day was purposely made for everyone to shred weeds out each year. I'm not saying that these companies are doing them on purpose but where are the results? Last year, the opportunity cost of going to Wilson Day for me was to socialize with the hall mates. But what ever happened to the patch of grass that we weeded out? How is it that every year there is the same type of weeds for everyone to pick up? Why can't the they put money aside and allow others to renovate the area so that they can completely fix it? Or is this just ultimately to have everyone do something every year for Wilson Day? Once again I'm not trying to demolish the pride those have over Wilson Day but it always seems like every year students go to the same place to do the same thing we had to do last year.

Theaters and Fine Arts (October 7th, 2011)

The main idea behind the article is to discuss how to government wants to subsidize art in the economy. The problem with that is two things; there is a fear the government would subsidize the paintings and sculptures in private sectors and gain the money for themselves. But also, if the government was to subsidized it, there would be sadness among the creators of those fine pieces of art. For example, if the government wanted to subsidize central park then people would lose the feeling to spend time walking around with their family at the park. It would be meaningless and sad to see things that used to be an enjoyment to others taken away from the them. I know that I like walking with my friends to the park but if the government were to subsidize that park, I wouldn't walk with the same incentive than I did before.

Use versus Exchange (October 7th, 2011)

How much of this action changed my cost?
Thinking about the margin or Marginal Cost.
Rizzo might be a typical selfish person that you may understand. The idea of being selfish and selfish has little meaning.
Without the margin, does that mean his friend would be helping others and not sleeping since it's a self-action. For example studious, laziness, etc.
What about drugs and the availability of it to the public? My house is clean and I'm comfortable around it.
By waiting to release an album every year is a better marginal cost to maximize the happiness of his fans and gains the payment of it. If we watch groundhog day everyday, would the media post it everyday? No because it will become a norm. Allocation of resource in something else.

Use vs. Exchange
The relative scarcity of teachers and an athlete.
Teachers are much more common whereas athletes need to physically fit and defined in a sort of way that is a scarce resource.
We eliminate all athletes and teachers. Almost positive to pay a teacher more than MBA players.
We clearly value the teacher than the athlete even before he gets paid more.
Teacher as a total is more important than the marginal athlete which is the use versus exchange.
Scenario of the woman doing the same type of work out one gets paid more than the other. (Monetary versus Non-monetary wealth)
What becomes valuable? The book or the fly swatter?
The value is subjective and can matter different throughout our interpitation. It's not the water but when and why we need to that water makes it cost differently to others.
Sunk Cost - Cost where resources are not recoverable as I make my decisions.
It's like you have a relationship for a long time and staying with her for another year. What is the point if you will  not get the years back?
Bad economics decisions when you ignore some cost but good ones when you want to avoid costs.
Humans act with purpose
People respond to incentives.
Behavior will change when the benefits and cost change which is the law of unintended consequences. Often times decisions can make pattern decisions based on actions. How can someone know? You can't.
It changes the cost of getting into an accident if you wear the seat belt. We are becoming murders. If you care about safety and allocate resources and spend it on something else like health care and save peoples lives.

Broken Windows (October 5th, 2011)

The three problems with "it's stimulating" notion.

1. I did not choose the roof to behin with,
2. We lost the value of the resources used to regain.
• ie. Ignore the money, resources matter.
3. But..."What if the roofer was unemployed?" GANS?

With preferences, society is poorer if you didn't get the roof that you wanted or the bike that you wanted to buy. Before the storm, one had $1000 dollars and a roof. But after the storm, they have $0.00 and a roof that replaced the older one.

What is the money for society to help you fix the roof for you. Society was poor for that roof because it could have been for someone's deck. WWII got us out of the depression but killed many people. The funds have to come from somewhere; tax revenues. Fewer dollars now to spend. Resources have to come from somewhere. If the roofer was totally unemployed, ignore the money because resources truly matters. The wood gets used more and more people want it and the cost of the wood increases. After the storm, the wood would cost more because everyone is doing it. The resources come from somewhere. Jobs are not a benefit but a cost.

Jobs have an income, hence the benefit. Aside, it is a cost. You can't eat a bomb. It had lower values of consumption. There was no stuff on the shelves. WWII brought down resources, it wasn't about the money. The war stimulate technology does not need to find a war to kill others and get what they want. What have these resources done throughout history.

4) Cost are subjective.
The cost that are imposed, you never know about them.
5) Marginal Analysis: Water-Diamond Paradox
Something high in value has a low exchange value. You can't build a house with diamonds. It's just shiny coal.
200 seat plane and the total cost of going from Rochester to New York City is $100,000.00 . The average cost per seat is $500.00 and 180 passengers in the flighty. Given that the place will fly to New York City.
It may cost 50 dollars per seating what would it cost you to get on the plane. They are willing to change it for you so that you can get on the plane.
If the plane was full, the marginal cost: The change of your cost from taking the action. What does it cost to build a new plane? So much...
The cost of developing the drug. It could probably change fixed costs to get things to profit differently.

Basic Economics Principles (October 3rd, 2011)

1. How they make decisions
2. How people interact
3. Aggregated

1.  People faces tradeoffs (RANISTAAFL) ; which means no free lunch.
• What is a cost? 
• - There is too much of a good thing
2. Opportunity costs
• Breaking windows
• No new jobs
• On net, there is no change
• Before and after
3. "Marginal" analysis
• Subjectivism
4. Sunk costs
5. People respond to incentives

Cost
-Anything that consumes resources
-Spend to much time to get an A in economics.
-How to make pie as big as possible or evenly divided?

Drug Lag
Longer it takes to get drugs out of there and more people are harmed.
Drug Loss
Research and development on drugs but we only get about 20 new ones per year - $1.5 billion dollars

-reverse incentives is the waiting to get things approved. taxes are not cost; tax cuts and raised taxes do not have a cost money to collect taxes. Opportunity costs has a net benefit of your next best opportunity.

You win Bruce tickets but you cannot resell them. Versus Barry Manilow tickets which cost 40 dollars but they are willingness to pay for 50 dollars. What is the cost of seeing the Bruce ticket?
It was net value of 50-40 which is equal to 10.

Broken window effect is the disasters of the stimulate economy. Why is this bad for the economy?
What would happen if there was no disasters? The benefits are deducted from the costs.

EWOT: E-cow-nomics

If a farmer has two cows in the farm, it would be beneficial to give one of those cows to the neighbor. This will establish socialism which is beneficial in trading with their neighbor or the overall production of the meat and dairy products of the company. By trading or even giving something of that of a value, you can try to get something better from where it was before. Say for example if the farmer had two cows but he needed pigs to continue his meat production at his farm. He could sell the cow for a couple of pigs. By getting a couple of pigs, the farmer could use one for the production of meat products and he can use the other for reproduction and selling them for pigs or even adult chickens to continue producing meat products from the farm.

Economics and Happiness (September 30th, 2011)

Economics is not a derivation towards happiness. Economic growth in the United States has not been spreading towards citizens int he United States. It has been proven to be flat for the past decades due to the equality of economics and wealth towards other people. Absolute income matters with the happiness one obtains but there is no statistical power to say that relative income and positional outcome has not been proven to be stated to be happiness. Adam Smith being part of how the invisible hand will bring the greater good for mankind. There was never good results but there was also not as much competitions in the markets. By making the human beings unhappy and unhappiness will also be brought towards the children that might also have the same idea with discomfort and comfort. Accessibility to schools will bring a vast variety of income which gives success in society whereas others might be going to a bad school and go through a smaller success and gain a small income. If you give money to countries that do not have any type of money, they will immediately have happiness towards the income of getting the money and how it is equally distributed.

Adam Smith (1723-1790) (September 30th, 2011)

Laissez faire: People associated with one another so long as they are not harming one another.

• Police and Courts
• National Defense
• Public Works

How can people get fed if the King does not feed them?
Smith said - people who pursue self interest should be allowed to:

• Rights of property
• Vital that the division of labor exists.
• Exchange has to be peaceful and mutually agreed upon
• No special privaledges

Smith mentions that:

• The source of wealth is the ability to produce and trade with other values.
• Mutually persuade them to trade with you and not stridently. Such that of this week's workshop where people had to trade with one another to get a certain goal of trade.
• You never ask for help no matter where you do it.
• When people need to wake up, they have no intentions of doing it to help everyone but more for the purpose for payment.
• Question those who would like to interfere with our affairs.
• Allows people to adjust in activities without someone telling them to do it. This is part of mercantilism.

Laissez faire for Adam Smith:

1. Parties should buy at any price.
2. Any quantity to control prices in a mobile economy.
3. Trade should be open to everyone in the public.
4. License to do the occupation asked for.

Basically buy and sell to whoever you want, wherever you want, whatever you want.

Spontaneous order and Ferguson of 1767
The elites of the day had privileges due to Corn Laws:

• Grain was large, large imports were made.
• It was a price twice as much of a person's wage.

Anti Corn Laws in 1820
Corn Laws repealed in 1846
All goods produced in England from around the world in 1860
World had the fastest economic goods in 1870.

Relationship between Individuals and Firms (September 28th, 2011)

Insight:
Income=Expenditures

You can't get richer by being self-sufficient.
If you improved innovation and have less and less people in the farm when there are better tools in use for the farms.

Source of wealth int he commerce revolution was production!

Mercantilism Source of Wealth

• Gold in the treasury
• How much wealth the King had
• Positive balance of trade

Good economics is not to be prudent.
David Hume (Philosopher) "Economics is not a social concept, it is a stand alone topic. He also said that it was the productivity of agriculture to gain productivity. He said it was commerce."

Merchants had their idea but it is not correct.
Trade is a zero-sum and wealth was fixed for winners and lowers. The money is wealth and the king should control trade. The king is suppose to make trade positive to get gold in but not allowed to leave England. There was no free trade. There was a restriction of ports. They wanted to promote their exports to other countries.

The Commerce Revolution (September 26, 2011)

Technology of the worker productivity and raised wages on steam power engines and created surplus.

What made this enterprise possible?
Chinese developed gunpowder, floss, toothpaste, toothpicks, ships, and the compass.
New way of life grew from the way of life and it took 400-500 years to get there.

• It slowed decay of religious domestication.
• Nationally and the laws were comfortable around one another. An example would be how the United States does not need to ask for ID every time they cross the borders. 
• Technological advancement and creation of productivity.
• Since made little discovery in the commerce revolution.
• One electricity did elaborate through factories and it helped the inventions of telegraphs.
• Connected to groups of small people stole ideas of the art industry and innovated it.
• Technology of defense outweighted the technology of offense.
• Boiling the state is extremely difficult to balance so it can protect the merchant but not overwhelm it with power.
• Christianity was good for ideology and helped pass the laws towards it's citizens.

Mercantilism

• Reign with the Feudal system till 1800's, or progressive corporatism.
• Where kinds oversea and plan all of the economic duties
• Heavy restraints due to the state
• Crafted guilds
• Licensing
• Government granted monopolies
• Import and export regulations
• Indoor and outdoor restrictions
• Limits on domestic productions
• Extensive price control
• Wage controls
• People who were caught not doing these kind of things were not fined or sent to jail. It was a lot worst.

What Social Science Does and Doesn't

The article explains by explaining that social sciences are imperfect and always has a plausibility of being false. Sciences such as biology, chemistry or physics, however are always proven with theories and proofs that evidently the science is fact. The problem with social sciences is that although it brings reasonable predictions, there is always a fair chance that there something may go wrong. Social sciences also bring the worst on others as if they place a statement in the public on what is to come to the economy, they're reputation would be on the line if they are right or wrong. If they are right, it will only boost their answers and always state that they were right in any type of situation when they were previously correct. In the world of sciences, this is not a good thing. Theories need to be proven with evidence and background information based on previous theories. If there was a based answer on a social theory on society, it would only make a tree that has a plausibility of truth or false answers, where sciences are always proven to be facts or made to be always be truthful and useful to develop other theories.

EWOT: Danforth

With meals being served at a surplus with it's mediocre taste and petite portions each plate, Danforth's buffet has become the last resort to anyone dinner on the University of Rochester. However, one may argue that if you take too many dishes, you are wasting food that can be used to feed others in different countries. The problem is that statement was always false. To begin with, the food is sent to the University and then cooked for students. The food that was cooked will be given to students to either eat or thrown away due to the expiration dates. But would it be economically beneficial to leave the dishes out instead of trying them out? The answer is no. The dishes left behind would serve a purpose for others not to take the food. The food would look more and more cold and unappetizing. Moreso, if the food is untouched, the people working for Danforth either use that as their meal or thrown out. If anything the economy of food marketing would decrease since the workers get the food as their meals and they don't use part of their paycheck to spend on lunch or dinner. Overall, the students should be allowed to take the food that they desire and if they ultimately don't like it, it would not affect the economy. The statement would still be false and the food that was not used would never be used to feed others in different parts of the globe.

Suicide, Stanating, and Theories on the Commercial Revolution (September 23, 2011)

Moore's Law Processing chips should be twice as fast and technological develop,emt was predicted twice as fast each year. The last decade there has been less battles than in the last 100 years. better nutrition, better medical care so that makes less violence should still continue these tpe of things. Every resource then what we have today has increased before and it is very cheap. Physical emissions in present time is all good for the environment better than it was decades ago where they lived in poverty compared to us.

Lay card reports that richer is not happier, thus if income is not important for happiness, no need to focus on economical growth. An increase of individualism and freedom since 1981 has been attributed with increase in enjoyment across the globe.

Suicide has maintained an increase in rate due to the accessibility of doing harm to the body such ans an overdose in medicine. The stagnating is also as different now, for example your parents and you don't have much of a change since they used a busted car, while you use a sleek car, but the stagnating difference between your grandfather and your great grandfather is much more different since one used a horse and the other used a horse.

The Commercial Revolution
Real economic success

• Religious Liberty
• Norman's Rights
• Political Freedom

- The Classical Theory

• We used up our increased productivity with more people.
• Fertility will increase as growth happens.

-The Modern Theory

• Continuous improvement in technology, knowledge and human special capital allow productivity to outpace population growth.

Living Standards, Then and Now (September 21st, 2011)

There is a change of necessaries from the 1900's and 2005. Typical family spent 36% on home security. We have twice as much income to spend off on other things.
The charts that described us getting richer:

• None of us would starve or be unclothed because we spent lots of money on other stuff like vacations.
• Free ourselves from the necessities.
• Spending on our education has increased.
• Ability to pay taxes and purchase public goods.
• This freed up wealth also buys us bureaucrats (people working for the government), bombs, and bailouts.

1900 would not be able to bailout companies, but now there are 2100 bailouts done easily done by one man. Basic necessities are far easier for an American than others around the world. Bill gates might own a liake but you can still drive around it; which means we are not different from him at all.

Income seriously understands the extent magnitude of the economic growth. Commodities themselves do not matter, it is the services provided the consumption of them. Real economic is underestimated by up to 1.4% per year.

Diseases and Health (September 19th, 2011)

Diseases

• We have better technology to spot any type of those diseases.
• Bone structure has increased now as we are all different.
• The Flynn Effect
• Cognitive science of measurement of intelligence.'

Health Care

• Medical innovations have been beneficial hence the increase in mortality.
• Economic gains should be getting larger in population.
• Values on human lives and the growth of the values towards human beings and income.
• Income has become the life expectancy correlation.

Living Standards in the United States

• Labor Market
• Health - "I love Cancer"
• Income Revisted
• Household Inventories
• Human Capital

Productivity Multiplies
160 hours in 1895 to buy a bike but 7 hours in 1997 to buy the bike. The bikes are also improved than that of those bies before.

We are now consuming different types of things. The cost of the services and not the ways to get to those services. Our standards of living is 25 times better than the 7. Consumption of how to do it and the way you do it while our services are free.

EWOT: Man Down

What is the problem with the person walking out of the boat and having them getting paid?

The problem states that a persons hould get paid after the deed is done. This is to allow the person to actually entrust the person with the oney once they finish a certain set of activities wanted by said owner of the money. In this example, the owner will not give the captain any money unless he finishes the deed and drops the prisoners off in Australia. The reason behind this is due to the captain either dropping the men outside at sea or even leaving them in other countries. At the time, there was no instant communication that would allow the owner to know if the deed was completed. He knew that once the captain came back from his trip with no prisoners, he would have to give the captain the money. If he gave it to him beforehand, he would have made sure to drop the prisoners somewhere closer than Australia in order to receive his payment.

The Definition of Economics (September 7th, 2011)

Economist are people that came very late since what they do is explain the economy, it was difficult to state it. Process of wealth is the reason for economist not how we maintained poverty.

• Economize is by making comparisons with the choices you face. What you think about is the expecting benefits. You can also compare it to expected costs. This is how is creates rationality. You do what will benefit you better.
• What we use to economize are subjective. They change each day because they are not objective and it's absolute need to it.
• Incentive to what you have in your property to keep it clean and try to trash the public.
• By the way we dress, it's not about the price but it can also have other meanings behind it that can reconcile to what is occuring.
• Changing the payment from the moving prisoners to move them to aussie to have them actually walk out from the ships.

Economics is the study of prudence and temperance. It is the study of sympathy and man's relation in society. Economics is the study of an emergence of order and of wealth/creation, and the consequences of choices as part of the human cooperation.

Economic Growth (September 16th, 2011)

• The pleasure that we get that matters the good and supply that we retain on their very own. The same thing mentioned about the childhood.
• If everyone lived similarly, then the primitive income and growth are rough estimates to what they were doing in the past.
• How likely was it that these people were rich? Typically poor countries live at a minimum income and will not only strive to try to get rich.
• What it means to have a resource? (Past corn and Modern corn)
• To be all of these past historians died bad deaths because of missing medicine and health.
• Never before where we were able to take the advantage of buying dinner from a chef, let alone all those different countries.
• Bill gates and us are infinitely less different than him and Issac Newton.
• A parked car in the 1920's is much more polluted than a modern car that drives 1000 miles.

EWOT: Water

It has just come to my attention that LoveJoy as a dormitory has no water fountains. Being that I'm stuck in my room doing work, I wanted to discuss my different options in obtaining water and what choice is economically better to decide on.

The three choices are as follows to have drinking water: One can by packs of water bottles from the Hillside Market. What I benefit in this is that I get the water of my preference and always have a large quantity in my room so I could avoid making trips to get water. This reduces the time I could be using making the trips to get the water and use it on catching up on my readings or even taking a shower. The problem with it is that it's limited, in which I reduce the amount of declining which could be used for better things, such as late night snacks and Meliora dishes.
The next option is to go to Wilson Commons (The Pit) and retain water in large cups. The great thing about this option is that the water is free and I couldn't drink as much as I need. The problem is that I can only carry two cups everyday. Although it's closer to my dormitory than the Hillside Market, it is also a trip that is not taken often. If I go to the Pit, I'm already eating a meal. Since the Pit has changed to declining, avoiding the Pit has become essential. There is only a limited amount of declining to spurge and then the the only options left is Danforth and Douglass.
Finally, my last option is to go to dorms around my dormitory and fill up bottles of water and head back to my room in that order. The problem with that is going to these different dorms everyday trying to take the water that they have not being stared down by a bunch of freshman. In a sense of uncomfortable meetings, it would be wise to avoid this option.
The quality of water also diminishes from each option as the first option leaves me with premium water made for drinking, the second option with water and Nestea Iced Tea flavor, and finally the water from other dormitories which taste like pure iron. In all, I find that all these options are difficult to make all in one but the best option might be to make a trip to the Pit every once and a while and get two cups of water. Then when I go out, I try to stack more and more on the water. This water is not as bad as the water from the dormitories and it also saves declining which I will definitely need to eat on campus (Danforth is a last option).

Industrial Revolution

People were able to produce more food for the population growth. They never went through a scarcity. Pulled farmers in the city were not able to have agriculture in a fast rate as the technology produced. The people in the industrial also believed that they would lose their jobs because of the machine developed in factories but little did they know that it was a great opportunity to make money.
Technology and medicine made it easier for people to continue living. The Industrial Revolution had a stronger quality of life. People began to migrate over to the cities for the mobility of the capital and labor across the borders.
Overall, the Industrial Revolution was beneficial to the market at the time as it led to the progression of different types of products to the citizens and helped grow the country as a whole.

From Stone Age to The Info. Age (September 14th, 2011)

Are we better off today than 10 years ago?
To expect improvement is astounding:
2010 to 2000 vs. 1000A.D. to 0A.D.

The Dark Ages

• City shank, merchant left, the earth depopulated and uneconomical.
• The average growth rate would have been the same as Burkina Faso if it continued the same growth as the Renaissance.

Industrial Revolution had an extreme boom. Either you make your own product or trading your merchants. The rare one would be to beg and get exactly what they wanted.

Our growth now is doubling every 15 years. Current generations has a better average of age now than there has ever been before. Any technological advance went to living standards, which is known as extensive growth. Populations the triumph of growth and it is said to have the ultimate resource.

An Economic Evolution (September 12th, 2011)

Rizzo's Coffee illustrates:

The Invisible Hand

• The possibility of people cooperating and working together for the sake of a social outcome.
• Not all of the time but sometimes people get something good out of it.

Tactic Knowledge

• There are little bits of information knowledge that them and only them will understand.
• There is no possibility that they know of this information.

Why don't central economics work?

• Planners would tell people what they need to make and the resources they would use to make them. However what the outcome would come is the shortage.
• The world changes every 5-10 minutes and millions of decisions are made through these changes in the economy.
• Private properties benefit from the incentives.

Price System is a perfect signal of scarcity. Nobody can set prices unless the government steps in.

MicroEconomics and MacroEconomics (September 9th, 2011)

Microeconomics is the study of the individual choice.
Macroeconomics is the study of the issue that are caused by those choices, such as shortages.

•  For example, the obesity problem. The problem was not McDonalds because McDonalds took the advantage of the ironic allegory and had everyone's incentive by filling them with a cheap meal. The impact of being obesity has lowered today because the incentive of the public and the customers have more interest towards health and technology.
• Economist is not how to get to the goal but by the process and the way of thiking as it gets to it's goal.
• Economics should be studied by:
• Provides appreciation of the world around us
• Understanding the concept at hand
• Knowing the facts
• INTENTIONS DO NOT EQUAL RESULTS 
• Knowing the acts is important because if you end up being wrong or use a bad analysis, then the power plant that you would like to build will not be efficient. 
• The brain is divided into types, C and M are discussed which are scientific and emotions, respectively. People have a harder time discussing type C due to a scientific perspective being difficult. Type M gets you into harder types of problems to get out of because of unplanned order.

Incentives and Resources (September 5th, 2011)

• Incentives spur a bunch of new ideas to make energy and reduce the use of the energy that we use today.
• Relying on someone should not be the way of living. It should be more through research from each and everyone one of us working together.
• Few people think about culture and economy is decreasing yet now more than anything have people begin to exchange and share with one another to persuade one another and continue humanity.
• Based from the data given in January 2010 from the oil prices, the amount of oil has tripled since 40 years ago. The theory is oil running out soon based on mathematics is obviously incorrect. There will always be fossil fuels for society to use and continue to use for their everyday lives.

I, Pencil ( Rizzos, Coffee )

Impresonality

• All the things that were done to produce the pencil had no sole intention to make Rizzo's coffee
• We don't know these people who got Rizzo's coffee completed.

Self-Interest

• The people in the process of making Rizzo's coffee do not go through the process alone to get the cup of coffee. They do it to get another benefit, such as a wage.

Cognitive Issue

• Does anyone know how to do all the processes at once to get the product needed such as growing coffee beans, grinding coffee beans, then blending them to a mixture that is not only drinkable but to the taste you would like it? Would you then do it for $1.59?
• One person would spend thousands of dollars just trying to develop it on their way.

Who gave the orders?

• There was no central office or police officer forcing anyone to do it.
• The resources and people are found all around the world, with different religions and culture to cooperate together for work.
• There is no favoritism or rejection because it's impression to get Rizzo his cup of coffee.

Never Running out of Resources! (September 2nd, 2011)

• The idea of the pistachio as an abundance in the room would be a bad idea to gain because of the hard work to go through each shell just to get the pistachio. After putting shell after shell to find the pistachio, it was never free pistachio. You still output labor such as shoveling to find pistachio to eat.
• We will never run out of oil because we will always transition to other energy sources.
• The question is, should we nudge these things and hay wash it?
• The answer however is no because society transitions with incentives.
• In my previous geology class, I learned that there are 100,000 fossil fuels left in the Earth's crust that we can continue to use. In 40 to 50 years, we will not run out of resources because there is still some left in the group for us to find.

EWOT (Economic Way of Thinking)

The economic way of thinking is an understanding and evaluation of the world in a economical perspective.

• This also means that free items are not a good thing. The reason behind this is due to the product losing it's value. If the product has no value, the seller will not retain a profit from the product. This product is then deemed to be a waste, in such that the minerals used to manufacture the product were insufficient in an economical way of thinking. That product could have made a company some money.
• Another example is saving the endangered species. Saving the endangered species would prove to be useless because the United States will never run out of resources. The economic way of thinking is if a resource starts to cost a higher price than it has before, society will change their meal plan to fit their wages as workers. If they cannot afford to buy hamburgers for their family due to the high price in cow meat, then the family will eat chicken. This is the way incentives work throughout society and helps them evaluate their economic way of thinking.

Incentives (August 31st, 2011)

Incentives are used to describe how society behaves and reacts to events that involve an economical advantage.

• i.e. When Rizzo dropped the money on the ground, the higher the value the dropped, the more interested the people were and tried to take that money for themselves.
• If everyone expected Rizzo to drop the money every day, people would try to come earlier, come get seats in the front of the classroom in order to be closer to the money when it drops.

Q. How can economist levitate the issue from using gasoline and oil from jibbeitz to potholes?

• That oil and gasoline was going to be used to make another form of childhood memory. Regardless of putting them into jibbeitz or not, it would be used on other products that kids would constantly ask their parents to buy so that they can cherish it.
• No matter how much we try to prioritize the oil and gasoline for other types of products, the government shall always use it for a widespread of factories before we try to consider it for potholes.