June 23, 2008
Economics and Ball Room Dancing?
Economics is about making choices. We do it everyday, whether it’s in business or one’s personal life, resources like time or money are limited. This forces us to evaluate trade-offs and figure out which will make us happiest.
When you’re at McDonald’s, do you order the #1 combo meal or just a drink and the Big Mac? It depends. People value things differently. Value is subjective. If you value the fries more than the difference in price, you order the combo meal. If you don’t, you only purchase the drink and the Big Mac. This is the trade-off.
Another example: In March I really wanted to go to the Big Ten basketball tournament, but my adorable wife was not so enthused. However, after I begged and pleaded, she decided it might be OK to have a weekend-long college basketball experience. But only under the one condition that I would take ballroom dancing classes with her. The trade-off is straight forward. If the benefit (a fun time at the tournament) is greater than the cost (embarrassment of having to take ball-room dancing lessons), I should take her offer. If not, I should watch the basketball games at home on television.
You should not be intimidated by economics and economic jargon. Economics can and will be explained in every day language on this blog. Economic decision-making is everywhere, and that’s why I’m learning the Waltz.
By: Wade Rousse
Posted by Wade at June 23, 2008 10:13 PM
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Comments
The above restrictions may have effectively obliterated much of this response; however, your matrimonial trade-off is exemplary of veritably all interaction, economic or otherwise, in that your commitment to the waltz was the least imposing of ballroom choices. It might have been the Apache or something comparably strenuous. A well-negotiated mutual accommodation.
Posted by: J Nelson at June 25, 2008 5:58 PM
I absolutely agree with you; when people order McDonalds they would not sketch an indifference curve, but individuals do understand utility maximization even if they don't know the term.
And same thing with marginal analysis, it is pretty obvious when you should stop eating the next Big Mac, before you have some serious diminishing returns.
Keep up the Waltz, just like a portfolio, life experiences should be diversified.
Posted by: Ivan at June 30, 2008 4:03 AM
I absolutely agree; when people order McDonalds they would not sketch an indifference curve, but individuals do understand utility maximization even if they don't know the term.
And same thing with marginal analysis, it is pretty obvious when you should stop eating the next Big Mac, before some serious diminishing returns set in.
Sounds like the Waltz is a good chance to diversify.
Posted by: Ivan at June 30, 2008 4:10 AM
Your wife sounds like a great person. Invest in her and I"m sure your return will be awesome!
Posted by: laura at July 7, 2008 1:33 AM
Do you think this investment has "diminishing returns" (smile)???
Posted by: Wade at July 7, 2008 2:04 PM
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