Wednesday, February 6, 2013

Economics During and After the Industrial Revolution

Hello! Here is a podcast about economics during and after the Industrial Revolution. It is really entertaining, and I have put the link below so you can listen to it.


Here are some concepts explained in the podcast:

laissez-faire capitalism: When transactions between private parties are free of tariffs, enforced monopolies, subsidies, etc.

free market: An structure in which the price is directly controlled by the law of supply and demand, in which the government doesn't interfere.

law of supply and demand: The law of supply and demand refers to the increase or decrease of the price depending on how much you have of a "something" and how much do people ask for that "something."

law of self-interest: It states that even if a person acts for other people's interests, the ultimate interest of that person is its own.

law of competition: Monopolies aren't good for society, because when there is competition the different parts want to improve their quality or decrease prices, but when there is only one part they can be lazy on quality and establish the price they want.

the invisible hand: Each individual strives to become wealthy "intending only his own gain" but to this end he must exchange what he owns or produces with others who sufficiently value what he has to offer

contract: A legal document that establishes that a trade has been made, which must be signed by both parts.

free trade: When a person or company is allowed to trade with other countries without the need of paying taxes or having quotas.

balance of trade: The balance between the imports and exports, or between costs and profits.

zero-sum game: It refers to when the wins and loses of a trade are exactly the same, so there's no progress nor lost.

protectionism: An economic posture for protecting the country's economy by applying tariffs and quotes to international business.

embargo: When trade with an specific country is totally or partially prohibited by the government of another country.

quota: Putting a limit to the quantity of international trade.

tariff: A special tax applied for importing goods from other countries

comparative advantage: The ability of a party to produce a particular good or service at a lower marginal and opportunity cost over another.

trading partner: One of the participants in a business ongoing relationship.

niche product:    a product that is made and marketed for use in a small and specialized 
  but profitable market

specialization: When a company works the most in a certain product and becomes the best or one of the best distributors of the product.

life expectancy: The average life span of a community of people in a certain territory. E.g. In Japan, the life expectancy is of 82.73 years.

birth rate: Birth rate is the number of births over some time in a certain human community.

replacement rate: It refers to the comparison of the deaths and births of a population in a period of time

carrying capacity: The maximum population size a city can support, according to food, health care, birth rates, sanitation, etc.

utilitarianism: Tries to maximize utility, reducing suffering and maximizing happiness.

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