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  • How a growing economy lowers prices?

    Now I understand of course supply and demand, and that as an economy is more productive prices decrease. However, will not other prices have to increase as well if the money supply is constant? When talking about rising prices, the argument is that prices cannot all rise (thus causing a net increase...
    Posted to Economics Questions (Forum) by tcostel on Fri, Aug 5 2011
  • Economic Growth=inflation (so says my economics professor)

    My economics professor keeps saying economic growth causes price inflation. Something about this does not make sense to me. If the economy is more productive, then the supply of goods is greater, so would not prices (assuming the money supply is stable) actually drop? He would argue that it is aggregate...
    Posted to Economics Questions (Forum) by tcostel on Thu, Mar 17 2011
  • Price mechanism irrational?

    I'm having an argument with a socialist who says that the free-market price mechanism results in an irrational allocation of resources (in this case healthcare) because it results in resources being distributed to those who can afford them and not necessarily those who need them. Hence, he says "...
    Posted to Economics Questions (Forum) by SG875 on Fri, Jul 16 2010
  • How does Medicare make medical treatment more costly?

    I've read that so-called price fixing of Medicare reimbursements is partly responsible for the rise in prices for medical treatments. I would like more details on the mechanics of this claim. Thanks in advance.
    Posted to Economics Questions (Forum) by geniusiknowit on Tue, May 18 2010
  • Would free market healthcare really care about people's health?

    if people get ill they get a lot of money. Now I know that if a person has an illness that could have been prevented by $20 jabs and now has one which costs $20,000 to treat then free market healthcare providers suffer by leaving people to get seriously ill before they treat them. if they spend a lot...
    Posted to Economics Questions (Forum) by AnonLLF on Tue, May 11 2010
  • Why do prices rise whenever the government injects money into the system?

    Like when it gives money to schools and hospitals. The intuitive thing to expect is that these organizations will increase capacity(classrooms, medical equipment, personnel) and in the end result in a lower price. But why does the opposite happen? Doesn't this violate supply and demand? What do the...
    Posted to Economics Questions (Forum) by Kenneth on Mon, Apr 19 2010
  • Subsidy- Solar- Cell Phones

    Their subsidization of solar panel production is, believe it or not, has little or no impact on the pace of solar energy research and development. If they subsidized the production of cell phones, new faster, smaller, more reliable cell phones would still be coming out every year. The only difference...
    Posted to Economics Questions (Forum) by Sanchez on Sun, Apr 18 2010
  • prices or profit

    Is it prices that are the true market information or is it profit? Imagine two industries: luxury sports cars and cancer pharmaceuticals. Lets say that the total revenue of the sports car industry is $1 million and the pharmaceutical industry is $1.1 million. Lets also say that the luxury car company...
    Posted to Economics Questions (Forum) by tir38 on Thu, Dec 17 2009
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