What is Economics?

As you know, this blog is about Economics, thus it would be awkward if we can't answer that question. Some of you may think Economics is something about money. Well, It's true that money is a very important topic of Economics; however, econ is much more than just money, currency… After studying econ for a while, I came up with the following definition: Economics is the study of how a society make itself as efficient and equitable as possible.

So what are efficiency and equity? Here is how I think about it.

• Efficiency: getting the most out of limited resources
• Equity: distributing as fairly as possible among people, groups

Let's look at an example from Zack &Cody, my favorite Disney Channel show. In an episode, there is a pretty French girl comes to the Tipton, where Zack and Cody live. Only one of the two boys can have a date with her. From the efficient stand point, we should let one of the two boy go out with her and the other stay at home because doing so maximize the welfare of the twin. From the equitable stand point, we should let both of them stay at home since doing so gives them equal outcomes.

In general, economists are more concern about efficiency and psychologists care more about equity. I personally would choose a efficient outcome if I have to pick one. Why? It just makes sense to me that an efficient world is better than an equitable world.

Words of Introduction!

Hello and welcome to the Economics Fun blog!

Last four years, when I was so badly in love with Physics, I read a book called "Physics Fun" by a Russian author. The book contains of many physical insight looks about various simple things and events the author see in his life.

Now, when I am so in love with Economics, I try to do the same thing as that Russian physicist. Whenever I see a thing with an interesting economics nature behind it, I take some notes to remember and put it into this blog whenever I have time.

Since I am just an econ principles student, all of the topics on this blog tent to be easy to understand. However, you will enjoy the blog much better if you have some basic knowledge about economics. That's why I create this Seri of lessons to provide you those basic knowledge.

Again, thanks for reading my blog. Feel free to email me if you have any question, commend, or suggestion. I am more than happy to get to know you!

Enjoy the blog!

I am so DONE with school!!

I have just finished my last freshmen final!! So good to be done!!
Such a stressful final week! Beside Econ and Acc, I did not study so hard during the semester, thus the last week was really really tough for me!

But it's gone!

Now I have ton of time for this blog.
Starting tomorrow, I will write about one thing I earlier observed today.
If you are a BYU student, it may be interesting for you.

See you tomorrow!!

I shake hand with president Bush...

... indirectly!

Here it is!

Coming soon...

Dear my readers,

I have the final exams week coming next week. I can't spend too much time writing this blog.

But I will get back to the blog as soon as possible, right after I am done with all my finals. (Apr 22)

Can't wait to get back to my beloved blog!

See you soon.

An Email to Bill Gates

This topic uses the concept of utility. If you do not know or remember that term, you should probably look at this screen shot from the Mankiw's textbook.

Anyway, I wrote the following email to Bill Gates, known as the richest man is the world.

Dear Mr. Gates,

I am an loyal user of Microsoft products. I am very impressed by all the work you did for the cooperation. And you really deserve your richness.

But that is not the main reason I write this letter. I do it just to ask you a question. Do you think that everyone should try their best to increase the well-being of the whole world?

My answer is yes! And I think yours is the same!!

And as long as you think yes, I suggest you to write a $100 check to every person in my family. The reason is followed. I learned from my ECON 110 course that the utility function exhibits the property of diminishing marginal utility. Thus, as people get richer, the utility they get from each additional dollar falls. What that means is: the cost of your giving up $100 is less than the benefit of my receiving $100 since I am much poorer than your are. As the result, giving me $100 will increase the well-being of the whole society.

If your answer to the above question is yes and you think my explanation makes sense, please go ahead and do my request.

Here is our information. Name: Kim Tran, Travis Tran. Checks can be sent to

606W 1720N, Apt.136

Provo UT, 84604

Best regard.