Scot Wick Blog

  Mostly summarized from Gregory Mankiw’s Principles of Economics, 5th Ed. PART 7 Topics for Further Study Chapter 21 of 36 The Theory of Consumer Choice Section 23 of 23 … The theory of consumer choice describes how people make decisions and has broad applicability. Examples covered this chapter included pizza and Pepsi and work and leisure. But it can apply to any economic choice between alternatives including whether to consume now or save for later. But, do people really think in terms of the theory of consumer choice? As a consumer you quickly decide what to buy every time you shop. You do not decide by thinking through and writing down budget constraints and indifference curves. … The theory of consumer choice is an economic model. Economic models are not intended to be completely realistic for practical use and do not try to give a literal explanation of how people make decisions. The best way to view the theory of consumer choice is as of a breakdown into components and...

  Mostly summarized from Gregory Mankiw’s Principles of Economics, 5th Ed. PART 7 Topics for Further Study Chapter 21 of 36 The Theory of Consumer Choice Section 22 of 26 … Is the idea of a backward-sloping labor-supply curve, supply of labor decreasing as wage goes up, just a theoretical curiosity? Evidence shows the labor-supply curve over long periods does in fact slope backward. A hundred years ago, many people worked six days a week, today five-day work weeks are the norm. As the length of the work week has been falling the hourly wage of the typical worker has been rising. … Economists’ explanation for this historical pattern is: Over time, advances in technology raise workers' productivity and the demand for labor. The increase in labor demand raises equilibrium wages. As wages rise, so does the reward for working. Yet, rather than responding to this increased incentive by working more, most workers instead choose to take part or all of their greater prosperity as more le...

  Mostly summarized from Gregory Mankiw’s Principles of Economics, 5th Ed. PART 7 Topics for Further Study Chapter 21 of 36 The Theory of Consumer Choice Section 21 of 26 … Sally's decision between leisure and consumption determines her supply of labor. This is because the more leisure time she takes the less time she has left to work to make more money to pay for more consumption. … In panels (a) and (b) the right graph shows the labor-supply curve resulting from Sally's decision. In panel (a) a higher wage · induces Sally to work more and enjoy less leisure · the labor-supply curve slopes upward In panel (b), a higher wage · induces Sally to enjoy more leisure and work less · the labor-supply curve slopes downward … At first, the backward-sloping labor-supply curve may seem puzzling Why would a person respond to a higher wage by working less? The answer comes from considering the income and substitution effects of a higher wage. The substitution effect When Sally's wag...

  Fumiko Scot's information: Weight at 165 pounds, got to 160 pounds five years ago and have recently been bouncing between 163 and 168. Common sense ways to lose and keep off weight are eat right and light and get lots of exercise. Main exercise is walking, do 1~2 miles most days. Over career worked as a salesman in the steelmaking, fasteners, and auto manufacturing industries, lots of travel in U.S., Canada, Mexico, and Japan. Have visited every U.S. city with a major league, MLB, NFL, NBA, NHL, sports team except Sacramento, have gotten as close as Travis Air Force Base. Often traveled on Sundays, much time on the road so could not eat right and get enough exercise so got heavy, up to 200 lbs. Was on commission and made enough to retire early, now eat right and light, and get enough exercise. Now am spending most time reading and writing. Our Wick branch goes back to the brother of owner of the Wick House at Morristown National Historical Park in Morristown New Jersey, and on ba...

“The world we see that seems so insane is the result of a belief system that is not working. To perceive the world differently, we must be willing to change our belief system, let the past slip away, expand our sense of now, and dissolve the fear in our minds.” - William James “All experience has shown mankind are more disposed to suffer, while evils are sufferable, than to right themselves by abolishing the forms to which they are accustomed.” - Thomas Jefferson “Wherever good fortune enters, envy lays siege and attacks it. And when it departs, sorrow and repentance remain behind.” - Leonardo da Vinci “Struggle is the indispensable accompaniment of progress. If men were entirely social, man would stagnate. A certain alloy of individualism and competition is required to make the human species survive and grow. Without qualities of an unsocial kind men might have led an Arcadian shepherd life in complete harmony, contentment, and mutual love. But in that case all their talents would hav...