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6 votes

Why does fiat money have value?

The answer, that can be found in greater detail in the following book Rudolf Richter, Money — Lectures on the Basis of General Equilibrium Theory and the Economics of Institutions, Springer, 1989. ...
Holger I. Meinhardt's user avatar
6 votes

What's a "correct price" really? Does it exist?

tl;dr as KennyLJ correctly points out the concept of correct price is meaningless and it does not exist or rather you could say any price is the correct price (but again this just makes the whole ...
1muflon1's user avatar
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5 votes
Accepted

Is it correct to say that wealth is "destroyed" when an asset bubble bursts?

We need to distinguish two things here: the intrinsic value of the assets, and their fair value, or market value. No matter how much the price of an asset changes on financial markets (say, stock ...
Hector's user avatar
  • 1,077
5 votes

In this scenario, which coin is more valuable?

The word 'valuable' is not well defined in this question. If I am willing to buy an apple from you for \$1 and but I am only willing to sell an apple to you for \$4 which is more valuable: An apple ...
Giskard's user avatar
  • 29.2k
5 votes

Why is Uber worth almost as much as Boeing?

A big part of the answer to this question must surely be network effects. Yes, Ford has a lot of engineering talent. But so has GM. This means that Ford has to compete with GM to sell cars, and this ...
Ubiquitous's user avatar
  • 16.9k
5 votes
Accepted

GDP simple question got me confused: the sale of a capital asset

No, the sale of a capital asset doesn’t count in GDP, as the cost of the asset was already accounted for when the plane was first sold to Delta. To your second point, if a broker somehow provided a ...
dismalscience's user avatar
4 votes

What is the value of something?

There is a lot to be said about this subject, and I will only give a partial insight. First off, value is subjective. Everyone will place different values on different things, depending on such ...
P A N's user avatar
  • 329
4 votes

What is the wealth of a company?

The "wealth" of a company is not a well-defined term. The worth of a company, its market value, is whatever someone is willing to pay for it. The market's best guess of that value, for listed ...
410 gone's user avatar
  • 8,143
4 votes

What is the average economic value of a human life?

As a graduate in health economics, I'd use the QALY threshold to answer this question. A QALY is a quality adjusted life year i.e., a year in perfect health-related quality of life, two years with 50% ...
user44676's user avatar
4 votes

How can you know which is the "current dollar value" of a dollar value from another decade?

There are quite a few websites which will do a point-to-point calculation for you, if all you want is the comparison of the CPI. For example, https://www.measuringworth.com/uscompare/ Saying how ...
David Croson's user avatar
4 votes

What is the difference between microeconomics money and macroeconomics money?

There is no distinction between money in microeconomics or macroeconomics. In both fields money is medium of exchange, unit of account and store of value. The misconception you have probably arises ...
1muflon1's user avatar
  • 55.6k
4 votes

What does the price of bitcoin per ounce of gold tell us?

It's BTC per Oz gold which shows how many btc you need to pay for 1oz. To compute this, you need to know the price (and both are quoted in USD). It still tells you a lot about the purchasing power. A ...
Alex's user avatar
  • 344
4 votes

Question about supply and demand?

Your quote does not say "more supply equals less demand". The quote is about the market price, not any individual's subjective valuation of the good. Say a muffin is worth \$5 to you. If ...
Giskard's user avatar
  • 29.2k
3 votes

Do contemporary Marxist economists still deny the utility/value theory which underpins classical economics?

Conteporary Marxist economist Richard D Wolff says on the issue (abridged): The labor theory of value is not a theory is not a theory of prices. The prices of things is determined based on whats ...
EconJohn's user avatar
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3 votes
Accepted

What is the difference between shareholders' equity, equity, and book value?

Equity is defined as The value of an asset less the value of all liabilities on that asset. [source] This is a rather broad definition and equity can take on different forms. E.g., for a house, ...
clem steredenn's user avatar
3 votes

In this scenario, which coin is more valuable?

Since the exchange ratio of A to B is 10 to 1 in the first transfer and 5 to 1 in the second, it is clear that B is more valuable, although as @denesp says the exact value ratio is undefined. It's a ...
Adam Bailey's user avatar
  • 8,346
3 votes

Factoring Technology into Economics models

Yes, this is pretty standard stuff in economics. First, the simplest models contain it in a hidden form. Supply curves are derived from production functions, and include (marginal) cost of ...
rumtscho's user avatar
  • 264
3 votes

Can the stock market show indefinite exponential growth?

To answer your question, one needs to know a little economics and a little physics. I only really know anything about the former. That caveat aside, stock market values and GDP are metrics that ...
Ubiquitous's user avatar
  • 16.9k
3 votes
Accepted

Today's value of the Louisiana Purchase?

The video has a transcript with the references. The \$0.25B figure is obtained from here (after adjusting for inflation). Unfortunately, the author does not provide a source for the \$1.2B figure. ...
luchonacho's user avatar
  • 8,591
3 votes
Accepted

What am I doing wrong in the derivation of Bass diffusion model?

You are missing an integration constant $$ \log\left(\frac{p + qF(t)}{1 - F(t)}\right) = (p + q)t + \color{red}{\tilde{C}} $$ This constant you can name it whatever you want, I'm going to name it as ...
caverac's user avatar
  • 1,216
3 votes
Accepted

Gapminder's Dollar Street and the role of self-supply

On Gapminder's website they write If you have a question, maybe it's already answered in our Q&A. Q&A The underlined text links to a Google document, which answers several questions. ...
Giskard's user avatar
  • 29.2k
3 votes
Accepted

Who is Butler in Marx' footnote in Das Kapital?

I googled "The value of a thing is just as much as it will bring." in quotes, and got several hits that show Marx referred to Samuel Butler, the author of Hudibras. Here is one. Here is a another, ...
Giskard's user avatar
  • 29.2k
3 votes

Equity value vs Stockholders Equity

"Stockholder's equity" is how we label Equity in corporations, so it should be identical to the general concept of "Equity", except if, by a confusing misuse of words, by "...
Alecos Papadopoulos's user avatar
3 votes
Accepted

Is the value of a product measured in money a reliable measure of the economic value of this product?

No, the economic value and monetary value (price) are different concepts in economics. Value of a good to an individual is usually defined as the utility derived from that good. Unlike prices, it is ...
Dayne's user avatar
  • 1,725
3 votes

What does the price of bitcoin per ounce of gold tell us?

I am not sure what the chart intends to show. In any case, the series in question is how many BTC you need to pay for one ounce of gold. The scale is logarithmic by the way. If you overlay the inverse ...
AKdemy's user avatar
  • 4,092
3 votes

Why is Dominant-Strategy Incentive Compatibility treated as a virtue, and are there mechanism design models which treat it as undesirable?

The games played in mechanisms are not "games in the colloquial sense". Whatever players really value is represented by their payoffs, so if they value strategic richness of a game, this is ...
VARulle's user avatar
  • 6,735
2 votes

Is there another name for marginal luxury?

The closest I can think of is Stone-Geary utility/preferences, where consumption is assumed to provide utility only above a specific level (the $\gamma_i$ parameter in the link), which is usually ...
Alecos Papadopoulos's user avatar

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