Economics For Dummies, 2nd Edition, UK Edition

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It feels as if the invisible hand guiding each enterprising individual is the demand of the consumers. Companies have to change their products according to the tastes of the public; otherwise, they wouldn't be able to sell anything.

Perfect competition happens in an industry when numerous small firms compete against each other. Firms in a competitive industry produce the socially optimal output level at the minimum possible cost per unit.Macroeconomics studies national economies, concentrating on economic growth and how to prevent and ameliorate recessions. Governments fight recessions and encourage growth using monetary policy and fiscal policy.

Economics studies how people allocate resources among alternative uses. The reason people have to make choices is scarcity, the fact that we don’t have enough resources to satisfy all our wants. Monopoly: A monopoly is a firm that has no competitors in its industry. It reduces output to drive up prices and increase profits. By doing so, it produces less than the socially optimal output level and produces at higher costs than competitive firms. Unfortunately, there are many instances in which common sense has lost out to mathematical rigor in economics. An old joke is a quote from economist Kenneth Boulding that said something to the effect of "Mathematics brought rigor to economics. It also brought rigor mortis."Lynne Pepall, PhD, is a professor of economics at Tufts University. She has taught microeconomics at both graduate and undergraduate levels since 1987. Sal is basically saying at the end of the video that it is good to have mathematical and rigorous thinking when making predictions, but also important to use common sense and logic or else the prediction will turn out wrong. Is that right? The gap between classes (assuming you mean socio-economic disparities) can be better understood through economic concepts. The emerging and evolving field of development economics focuses on disparities across countries on several parameters. BUT if the company can change or take complete control of that hand, has brainwashed most of the population, and is bent on conquering the world for its own selfish, harmful needs, well...