Assume a foil packet of mustard whose only use is to potentially turn a plain hotdog/bun combination into a hotdog/bun combination with mustard. Given the Austrian Subjective Theory of Value, assume that you subjectively rank the end of consuming a mustard-hotdog above the end of consuming a plain-hotdog on your subjective, ordinal scale of value. For
PROBLEM: From http://mises.org/Community/blogs/donlloyd/archive/2009/02/20/the-world-s-hardest-austrian-economics-problem.aspx THE WORLD'S HARDEST AUSTRIAN ECONOMICS PROBLEM by Don Lloyd For background : http://mises.org/journals/aen/aen21_3_1.pdf REISMAN: If you open up the hood of an automobile, you see a number of individual parts that disable
THE WORLD'S HARDEST AUSTRIAN ECONOMICS PROBLEM by Don Lloyd For background : http://mises.org/journals/aen/aen21_3_1.pdf REISMAN: If you open up the hood of an automobile, you see a number of individual parts that disable the entire car if they are broken. There’s a fan belt, a carburetor, a starter, among many other items.There’s no
Assume a gold coin money standard. Some believe that new gold coins should not be allowed to add to the money supply. The basis for this belief is that once a commodity is established as money, society will derive no additional benefit from either more or less money. This is a standard Austrian tenet, that any supply of money is capable of providing
Sparsely scattered over Austrian and other economic literature are treatments of both the valuation and the factor pricing (separately) of essential parts of an automobile whose absence or malfunction prevent the automobile from serving its intended end or goal. Known examples include a steering wheel and a fan belt. This is a call for references to
From Theory of Money and Credit, pg. 106 : 1 More than two hundred years ago, John Law, far ahead of his time and with an insight amounting to genius, had seized upon this truth: 'II est raisonnable de penser que I'argent s'echangeait sur Ie pied de ce qu'il etait evalue pour les usages, comme metal, et q'on Ie donnait comme monnaie
A single worker can, in one hour, produce a paperweight as described below. Find the Austrian Theory that deals with the wage rate that the worker earns. Paperweight Description : Name - FRN-Brick Paperweight Market Price - $200 Manufacturing Process - Start with a clean freely available brick and cover by pasting one of each of the standard Federal
Let's say we have two economically and geographically isolated islands, each with the rough size and population of New Zealand. They are virtual clones of one another, and each has a functioning monetary economy based on a gold standard, with all prices expressed in ounces of gold in any physical form. If inter-island trade has suddenly become feasible
A candy bar maker produces a chocolate bar of a size which permits 10 nominal bites and which sells for a price of $1.00. Ongoing monetary supply inflation has increased the manufacturer's factor costs and forced him to decide between increasing the price to $1.10 or reducing the size to 9 nominal bites. PART I Considering only the effects of the