praxeology through price theory, lecture 6 with robert murphy - mises academy
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Mises AcademyAustrian Econ I:
Praxeology Through Price Theory
Robert P. MurphySpring 2011
Lecture 6June 1
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2nd half Chapter 3
1. Balance of PaymentsII. Stages of ProductionIII. Refine to Include ProductionIV. Tendencies
V. “Nonexchangable” Goods VI. Allocate By Marginal Utility VII. Where Do Good Come From?
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I. Balance of Payments
Money Income = Money Expenditures + Net Additions to Cash Balances
OR
Exports = Imports + Net Additions to Cash Balances
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A. Makin’ Money
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B. Timeframe Matters
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C. All Transactions Voluntary
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II. Stages of Production
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III. Refine to Include Production
Money Income = Consumption Expenditures + Investment Expenditures + Net Additions to Cash Balances
� A producer strives to maximize net business income, but not necessarily overall net income.
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IV. Tendencies
Laborers will take positions offering highest wages, investors will seek opportunities offering highest rate of return, and buyers will seek out the cheapest price for a good…
…other things equal.
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V. “Nonexchangeable” Goods
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VI. Allocate By Marginal Utility
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VII. Where Do Goods Come From?