When I saw that today’s Stream of Consciousness Saturday prompt from Linda G. Hill was to find a word that starts with “eco” or has “eco” in it and use it in a post, I immediately thought of my Amazon Echo. But then I realized that “echo” starts with “ech” and not “eco.” So it was back to the drawing board.
Then I remembered that I was an economics major in undergraduate school. Duh! You know, supply and demand, guns or butter, and stuff like that. What I liked most about economics courses in college were all the charts and graphs used to illustrate economics principles.
I love charts and graphs! Like the one below for supply and demand, which is an economic model of price determination in a competitive market.
Basically, the price of a good or service goes up when demand is high and supply is low and goes down when supply is high and demand is low. Makes sense, right?
And then there is the guns or butter model, which demonstrates the relationship between a nation’s investment in defense and civilian goods. It may buy either guns (invest in defense/military) or butter (invest in production of consumer goods), or a combination of both.
The more a country spends on its military, the less it has available to spend on goods and services for its citizens, and vice versa.
Okay, I know that you are totally bored by this discussion of basic economic theories. But don’t blame me. Blame Linda for this prompt. I’m sure my post about the Amazon Echo would have been considerably more fascinating.