The Great Economic Problem
- Title:
- The Great Economic Problem
- Description:
-
more » « less
In this video, we discuss how different markets are linked to one another. How does the price of oil affect the price of candy bars? When the price of oil increases, it is of course more expensive to transport goods, like candy bars. But there are other, more subtle ways these two markets are connected. For instance, an increase in the price of oil leads to an increase in demand for oil substitutes, like ethanol. And when the supply of oil falls, oil should shift to higher-valued uses. But, which uses? How do we decide where to use less oil?
This brings us to the great economic problem: how to most effectively arrange our limited resources to satisfy our needs and wants. Which approach — central planning or the price system — is better at solving this problem? Join us as we explore this question further.
Microeconomics Course: http://mruniversity.com/courses/princ...
Ask a question about the video: http://mruniversity.com/courses/principles-economics-microeconomics/economic-problem-central-planning-70s-oil-crisis#QandA
Next video: http://mruniversity.com/courses/principles-economics-microeconomics/information-problem-economics-hayek
- Video Language:
- English
- Team:
- Marginal Revolution University
- Project:
- Micro
- Duration:
- 08:13
Lilian Chiu edited Chinese, Traditional subtitles for The Great Economic Problem | ||
Lilian Chiu edited Chinese, Traditional subtitles for The Great Economic Problem | ||
Lilian Chiu edited Chinese, Traditional subtitles for The Great Economic Problem | ||
Peter Balla edited Hungarian subtitles for The Great Economic Problem | ||
Peter Balla edited Hungarian subtitles for The Great Economic Problem | ||
Peter Balla edited Hungarian subtitles for The Great Economic Problem | ||
Peter Balla edited Hungarian subtitles for The Great Economic Problem | ||
Fran Ontanaya edited Hungarian subtitles for The Great Economic Problem |