Your SlideShare is downloading. ×
Praxeology Through Price Theory, Lecture 2 with Robert Murphy - Mises Academy
Praxeology Through Price Theory, Lecture 2 with Robert Murphy - Mises Academy
Praxeology Through Price Theory, Lecture 2 with Robert Murphy - Mises Academy
Praxeology Through Price Theory, Lecture 2 with Robert Murphy - Mises Academy
Praxeology Through Price Theory, Lecture 2 with Robert Murphy - Mises Academy
Praxeology Through Price Theory, Lecture 2 with Robert Murphy - Mises Academy
Praxeology Through Price Theory, Lecture 2 with Robert Murphy - Mises Academy
Praxeology Through Price Theory, Lecture 2 with Robert Murphy - Mises Academy
Praxeology Through Price Theory, Lecture 2 with Robert Murphy - Mises Academy
Praxeology Through Price Theory, Lecture 2 with Robert Murphy - Mises Academy
Praxeology Through Price Theory, Lecture 2 with Robert Murphy - Mises Academy
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×
Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

Praxeology Through Price Theory, Lecture 2 with Robert Murphy - Mises Academy

233

Published on

For lecture videos, readings, and other class materials, you can sign up for this independent study course at academy.mises.org.

For lecture videos, readings, and other class materials, you can sign up for this independent study course at academy.mises.org.

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
233
On Slideshare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
3
Comments
0
Likes
0
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. Mises Academy Austrian Econ I: Praxeology Through Price Theory Robert P. Murphy Spring 2011 Lecture 2 May 4
  • 2. Austrian Econ I 1.The Marginal Revolution II. The Law of Returns III. Specificity and Convertibility IV. Labor Pains V. Crusoe Economics VI. Costs VII. Praxeology & Econ
  • 3. I. The Marginal Revolution See mises.org/journals/jls/20_1/20_1_3.pdf.
  • 4. II. The Law of Returns Factor Y b Units Factor X a Units Total Product p Units Average Unit Product p/a Marginal Product Delta p / delta a 3 3 3 3 3 3 3 3 0 1 2 3 4 5 6 7 0 4 10 18 30 40 45 49 0 4 5 6 7.5 8 7.5 7 … 4 6 8 12 10 5 4
  • 5. III. Specificity and Convertibility ●General law: A change in the value of the product causes a greater change in the value of the (relatively) specific factors than in the value of the (relatively) nonspecific factors. (p. 40)
  • 6. IV. Labor Pains ●“Leisure as consumer good” is first reliance on empiricism (not just action axiom), per fn 27. ●“Leisure is consumer good” = disutility of labor
  • 7. V. “Crusoe Economics”
  • 8. A. Saving & Investment
  • 9. B. Capital ●“He who possesses capital is that much further advanced in time on the road to the desired consumers’ good.” (p. 52) ●Importance of maintenance (gross investment) ●Possibility of “capital consumption”
  • 10. VI. Costs Definition: The cost of an action is the subjective value (or utility) placed on the next-best alternative that can NOT be achieved because of the action. (p. 71) Costs are never “realized” but are always anticipated.
  • 11. VII. Praxeology & Economics Praxeology: formal study of the fact that people use means to achieve ends (without commenting on the ends themselves). Economics: Studies action of isolated individual and of interpersonal exchange (aka “catallactics”). (p. 74)

×