Author Archives: Eliseo Pando

Private saving impacts investment by essentially funding it. If somebody earns more money than they spend and they then chose to place their unspent income in the bank, for example, then that individual is saving that money. The person who then asks the bank for a loan to start a business is investing that money,Continue reading “Eli’s Reflection – Ch. 13”

Productivity is important because it’s a huge factor in determining a country’s economy. Productivity is affected by physical capital, human capital, natural resources, and technological knowledge. If someone doesn’t have the tools they need to produce, also known as physical capital, then they are less productive than a worker who does. Similarly, if a workerContinue reading “Eli’s Reflection- Ch. 12”

Living in Rifle, it’s evident that the cost of living is high, but there are certainly surrounding areas which have a much higher cost of living such as Aspen. I did not chose to live here but my parents say they did consider the high cost of living, but they estimated they would still beContinue reading “Eli’s reflection- Ch. 11”

The difference between an intermediate good and a final good is that the final goods are what are included in GDP, while intermediate goods may be resold further down the line or used as part of other goods and services. A final good refers to the goods sold to the final consumer, and it alreadyContinue reading “Eli’s reflection- Ch. 10”

From the perspective of an economist, efficiency means placing a product precisely where it will produce the highest total surplus. This means that the producer or seller of the product is the lowest-cost producer possible, and the consumers of that product are the buyers who value the product the most, leaving the highest possible totalContinue reading “Eli’s Reflection – Ch. 7”

Venezuela’s government wanted to implement price ceilings that were an issue for the country’s economy. This relates to the chapter because in it, the effect that price ceilings could have on an economy were discussed, and in the article, Venezuela was going through those negative effects. If the government had placed price ceilings that wouldContinue reading “Eli’s Reflection – Ch. 6”

Apps like Uber and Lyft really seem to have taken control of the taxi industry, especially is large cities where these services are more prevalent. This has certainly affected yellow cabs because now they must lower their prices to compete with a more convenient service such as Uber. The rates that Uber and Lyft chargeContinue reading “Eli’s Reflection – Ch. 4”

The purpose of studying economics is not to acquire a set of ready-made answers to economic questions, but to learn how to avoid being deceived by economics. – Joan Robinson The economy of any country, big or small, can be too complicated for most of us to understand right away. A simplified model, such asContinue reading “Eli’s Reflection – Ch. 2”

This first chapter covered the ten principles of economics, and while they’re all things that I’ve thought about when thinking of economics, there were also some concepts that made me think a little more than usual. First, Principle #3, which states that “rational people think at the margin,” made me think of economists and rationalContinue reading “Eli’s reflection – Ch. 1”