My name is Joey
I'm a third year econ major and dean list student (whoop whoop)
I'm here to teach economics signs
The reason why is because recognized some interpreters
don't fully understand the concepts behind economics.
But don't worry, I'm here to rescue you!
Our first topic will be basic micro[economics].
There are four fundamental signs that you will see every day.
Sign #1 is demand
This means I want something!
Then we have #2, supply
Producers want to make something.
The sign for producer is [MAKE PERSON]
Then we have the consumer
I choose to sign [USER]
I know interpreters love [EATERS]
However, do I go to the store, decide to buy a nice blue notebook...
[Blue notebook emerges onscreen]
and then eat it when I arrive home? No!
This 'ASL' is conceptually inaccurate!
Micro[economics] classes also discuss the topic of government intervention
Taxes are one main example.
Now, this sign for taxes [FEE] is fine in general
but if it is graphed on a board, what should be signed? [WEDGE]
I know some teachers still teach you to shift curves [instead of putting in a wedge]
however, signing [WEDGE] for taxes is both simpler and conceptually accurate.
We also have a thing called a price floor [PRICE FLOOR]
or even better, a price floor [PRICE MINIMUM]
What is it?
The government-- for example, the government says:
The minimum wage in Seattle or San Francisco should be 15$!
This is a strict minimum and companies can't be charged any less!
Then we have a price ceiling which is the opposite.
Let's say the maximum for a widget is 3$
now that means the price can't be more than 3$
When does this typically happen?
During war, famines, natural disasters, etc.
As an example, I want to buy water while a hurricane is approaching
I'm getting pallets because I know the utilities won't work after the storm is over
Because I want to buy this water right now, the gov't might impose a price of 3$ for each [water pallet].
This idea is controversial. [Google price gouging for more]
There is also a topic called Pareto Efficiency
Pareto has no sign, but it is also called allocative efficiency
--but why?
Because if a person wants to change something in a market
but they make someone else worse off in the process
then under [Pareto's criteria] they can't go ahead and change things.
This again, is Pareto efficiency.
Finally we discuss the concept of monopolies.
I see some interpreters sign monopoly as [ONE COMPANY]
but this is inaccurate.
A better sign would be [TAKE CONTROL] because it shows
that monopolies have market power.
I won't go too far down the rabbit hole regarding the theory
but one of the requirements for a monopoly is that--
yes, there is one company, but it must also have market power.
Even one company might not have market power
For example, imagine this one company decides to raise the price by just one cent
too high, and then another company gets the incentive to 'jump in'.
that means this is not a true monopoly.
The monopoly also generates a deadweight loss
What is that?
It is a surplus that is lost to the economy.
Abbreviating [deadweight loss] as [DWL] is fine.
But if it's a graph, then DWL is shown as a triangle removed from the economy.
That's the sign.
Or you can make a conceptual picture as [ECONOMY TAKE-AWAY]
There is one last sign to discuss, welfare.
I don't mean welfare in the sense of going to the gov't and filling out forms
That is totally different [from the meaning in economics].
In economic terms, welfare means that I want to buy something
like for example coffee [brings coffee onscreen]
I [am willing to buy] this for 10$ but I get it for 2$!
That's welfare [in economic terms].
The sign can be [SHAKING W]
or it can be welfare [BENEFIT]
but it can't be [THUMB BENDING]
because that's the type that requires you to fill out forms and deal with the government.
This welfare is a different concept.
How do you feel about this vlog? Was it informative?
Do you want me to make more for Industrial Organization
or Game Theory? I can!
Let me know in the comments below!
