Archive for 1. Introduction to Economics

Lehman Brothers’ Collapse

lehmanus_1477587c

“Lehman Brothers Holdings is closing its doors with more than $600 billion of debt — the biggest bankruptcy in U.S. history.” – Market Watch.

Lehman Brothers was one of the biggest global financial-services firms. The collaspe and its bankruptcy has shocked invester from around the world, provoking fluctuating stock market.

How has Lehman Brothers owed debt of $600 billion in the first place?

“This crisis is clearly deeper than anybody had imagined only a short time ago,” says Peter Stein, an associate editor at the Wall Street Journal in a CNN article.

During the attacks in September 11, 2001, it had its offices destroyed leaving them with great loss. Also, Lehman brothers were exposed to unsecured mortgages, and they had terrible debt caused by credit-crunch.

So these critical problems piled on until there was an economic crisis in 2008 to 2009 which exploded Lehman Brothers. So Lehman Brothers had problems that pervaded so deeply it eventually collapsed when there was an economic crisis which had ‘exploded’ Lehman Brothers.

Resources:

Watch Market: Lehman folds with record $613 billion debt

CNN: Lehman Brothers collapse stuns global markets

Leave a comment »

1:1 Computing

150811570_labtops_00085

My parents thought that 1:1 Computing was an exciting way to interact fully with the subject Economics. However, my parents were concerned with distraction you might get from laptops just like any other parents.

I think that if you reach Junior year, I think that most of the students get responsible of their academics. So there will be less of distraction. If we only set our laptops fully optimized for studying economcs, there would be no worrys. For example, you can register the class blog, moodle, and other economcis websites to bookmark to prevent going to irrelevant websites. Also, I think that our teacher is having full control of what students are doing on their laptops.

In short, I think that the distraction you get from laptops are neglegible.

Leave a comment »

Human Development Index

Human Development Index is an alternative statistical data to GDP for indicating human development in each country.

It looks at 3 big categories: 1) long, healthy life, 2) knowledge, and 3) a decent standard of living. Specifically, they look at life expectancy, literacy rate, education, and GDP per capita.

I have researched China about its HDI. It ranked 94th country, and its HDI was 0.762 (out of 1). From this data, I have realized that even though China has the GDP of ranking top 3 in the world and economic growth rate of 9% every year, they were irrelevant. GDP and economic growth were not quite related to human development of countries.

Comments (1) »

Production Possibility Curve

Summary:

  1. Resources are limited
  2. Shows how efficient an economy is
  3. Choices between alternatives -> trade offs
  4. Opportunity Cost increases
  5. Shifts outwards -> better technology & new resources

Leave a comment »

Economics News Site: BBC News Business

Click here: BBC NEWS: Business

This website is BBC’s news page on economics. This website has an international reputation as an authentic news article page. This particular page is devoted for articles about economics.

The following link is my page for economics news articles: Sang’s Economics News Articles

Leave a comment »

Mind Map of Resources

Map

Resources: Land, Labor, Capital, and Entrepreneurship.

Leave a comment »

The Right to Life – Germany

images

a) The opportunity cost of treating the leukemia patient is that you cannot treat other patients who would have high chance of surviving.

b) The opportunity cost of not treating him would be you could treat other patients who have high chance of survive.

c) It can be justified in an economic point of view. The opportunity cost is way more beneficial than treating the patient.

d) This is a typical case in a sense that you have to make choices that has best utility.

Leave a comment »