5 Basic Principles of Economics

Thinking Like an Economist

  • Understanding Market Shortages: Oil, Concert Tickets, and College Basketball

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    Economists often talk about how markets adjust to shocks with relative ease. Recent news offers three prominent examples of markets with excess demand: world oil and gas, reselling concert tickets, and college basketball. These examples are newsworthy for the same reason even if the “solutions” differ. Not everybody is happy with the “solutions” and that…

  • The Girl Who Cried Pearls: A Hidden Economic Masterpiece

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    A previous post noted that many movies contain economic lessons. The purpose of this very short post is to encourage you to watch The Girl who Cried Pearls for many reasons. It won an Oscar for Animated Short Film last night, which adds to the NFB‘s long list of awards. I think that this story…

  • Understanding Seasonal Trends in Toy Sales

    Understanding Seasonal Trends in Toy Sales

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    A lot of toys are bought during December, and the news makes it seem as if Christmas spending plans are important news. Christmas and birthday are likely to be the two biggest reasons to buy toys for a child. “Canadian toy and games sales generated almost $7.3 billion in retail store sales in 2022”. Most…

  • Exploring New vs. Used Car Market Trends

    Exploring New vs. Used Car Market Trends

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    The car market is evolving with increasing average vehicle ages and rising prices for new cars, now averaging about $50,000. Consumers are keeping cars longer, possibly due to costs, while the used car market shows different price trends. Dealers benefit from this shift, focusing on maintenance, but market dynamics remain complex.

  • Improving your Financial Literacy: Fear, Greed and Investing

    Improving your Financial Literacy: Fear, Greed and Investing

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    November is Financial Literacy Month. When reading financial news recently, you see that many commentators worry that stock prices are too high but the advice is often vague. So, you may wonder, how can “I” become literate if the “experts” appear confused? You should learn what to focus on when making decisions in a market.

  • Trick or Treat: Lessons in Economics

    Trick or Treat: Lessons in Economics

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    Halloween is an odd event because it is so silly: people dress up in scary costumes and, for one night in the year, anybody who knocks on the door is given candy. This post notes six lessons involving economics, not including the incentive/threat implied by the phrase “Trick or Treat”.