Sunday, January 25, 2015
Marisa white chapter 1 question 6
The part in the chapter that I found interesting was when Wheelan talks about how economics somewhat revolves around people's preferences. And how it's good that everyone's preferences are different and unique. He says how rich people have different preferences than poor people which I agree with but at the same time it's not necessarily their fault that their preferences at the time may be more need based while richer people's preferences will most likely be more by what they want (like the example of birthday cakes for pets) since they probably already have everything they need. And also going along with that I thought it was interesting when he talked about the south American villagers cutting down valuable wildlife habitat to provide for their families, but that will eventually make the county poorer in the future.
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I also found this section interesting because I feel like most people have similar preferences however it is the people who can afford them that are able to obtain them. For example most people don't want to have to cut down the wildlife in South American villages however the people fighting to protect them are those who won't be affected by the lack of resources it would produce.
ReplyDeleteI do think that preferences play a big role in economics. If income was not an issue, I think that many people would have the same preferences, but because of the differing incomes, people tend to value different goods. These differing values may not be understood by all, which provides information for why the South Americans feel they are doing good by providing for their families, but the wildlife preserves feel the South Americans are hurting the wildlife areas.
ReplyDeleteI too found this interesting. It instantly made me think of these catalogues that my family gets in the mail that sell really expensive products that I always question, "Who would ever buy this?". Then, I realized that these catalogues are targeted toward wealthy people who have enough money to spend on pointless products and since they have the money they'll be willing to pay for things they don't even need.
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