The Ten Limerick Principles of Economics

Says Harvard economics professor Greg Mankiw (pictured):
"Although the study of economics has many facets, the field is unified by several central ideas. The Ten Principles of Economics offer an overview of what economics is all about."
A generation of undergraduates has mastered the Ten Principles of Economics through the agency of Prof. Mankiw's famous textbooks and courses. Now, in the interest of the general public, Dr. Goose shines a light on these Principles to reveal their provocative yet oddly rational sexual subtext.

1. People Face Tradeoffs.
"I find," said a fellow named Grange,
"Our position exceedingly strange."
"My dear," said his Miss,
"If you hanker for this,
You must offer me that in exchange."

To get one thing, you have to give up something else. Making decisions requires trading off one goal against another.

2. The Cost of Something is What You Give Up to Get It.
"Never free are the amorous fruits,"
Said a girl who astutely computes,
"For there's much I'd have earned
If these calories burned
Had involved more productive pursuits."

Decision-makers have to consider both the obvious and implicit costs of their actions.

3. Rational People Think at the Margin.
Said a rational woman: "What then of it?
Though it's pointless persuading the men of it,
The marginal cost
Of virginity lost
May outweigh the marginal benefit."

A rational decision-maker takes action if and only if the marginal benefit of the action exceeds the marginal cost.

4. People Respond to Incentives.
In Miami, when winter ends sooner,
Then cheating becomes opportuner,
As the off-season rate
In the spring may abate
The marginal cost of a nooner.

Behavior changes when costs or benefits change.

5. Trade Can Make Everyone Better Off.
"I like trading," enthuses Ms. Mozer,
As could tell ev'ry fellow who knows 'er,
"I begin with Miguel,
Who stimulates well,
While Fritz is a hell of a closer."

Trade allows each person to specialize in the activities he or she does best. By trading with others, people can buy a greater variety of goods or services.

6. Markets Are Usually a Good Way to Organize Economic Activity.
Said she: "It's good to have planned
To get service by central command,
But it's really more fun
When ev'rything's done
By the able Invisible Hand."

Households and firms that interact in market economies act as if they are guided by an "invisible hand" that leads the market to allocate resources efficiently. The opposite of this is economic activity that is organized by a central planner within the government.

7. Governments Can Sometimes Improve Market Outcomes.
Said a tremulous fellow named Monk: "Sure,
I would rather no kids at this juncture,
So I'm glad they don't let
The marketplace set
The minimum standards for puncture."

When a market fails to allocate resources efficiently, the government can change the outcome through public policy. Examples are regulations against monopolies and pollution.

8. A Country's Standard of Living Depends on Its Ability to Produce Goods and Services.
"My sweet," said a lovable lout,
"Of this there can be little doubt:
The continuing health
Of our national wealth
Is dependent on how you put out."

Countries whose workers produce a large quantity of goods and services per unit of time enjoy a high standard of living. Similarly, as a nation's productivity grows, so does its average income.

9. Prices Rise When the Government Prints Too Much Money.
To her daughter said Mrs. McNeilly,
With a look that was solemn and steely:
"Your currency, dear,
Will be cheapened, I fear,
If you fling it about very freely."

When a government creates large quantities of the nation's money, the value of the money falls. As a result, prices increase, requiring more of the same money to buy goods and services.

10. Society Faces a Short-Run Tradeoff Between Inflation and Unemployment.
"Inflation is much like a phallus,"
Said a deep-thinking lady named Alice;
"It's better off bridled,
Though hands may be idled,
And some may complain this is callous."

Reducing inflation often causes a temporary rise in unemployment. This trade-off is crucial for understanding the short-run effects of changes in taxes, government spending and monetary policy.

31 comments:

  1. Replies
    1. Professor Mankiw,
      You look so young and handsome! I had no idea! Is that a current photo?
      Yours truly,
      Ellie

      P.S. My dearest Dr. Goose: I will understand if you should choose not to publish this comment. It is indeed a great complement to receive encomium directly from the source, as it were. I have great respect for you, and of course, for Professor Mankiw, without whom I would have never been aware of the many (100% free), open access publications of the Brookings Institute. Kindly consider this: I am a childless widow in my 40's, and...tempus fugit

      Delete
    2. Well, Ms. K, I am not aware of the Professor's personal situation, but "nothing ventured, nothing gained!"

      Delete
  2. Nice list.Since I live in Greece and I am an Economist number 10 the tradeoff between inflation and unemployment is very important.Also number 8 is very crucial,we do not have heavy industry to generate income or make exports.

    ReplyDelete
  3. This is just beautiful.

    ReplyDelete
  4. I'm having an argument with someone who doesn't seem to understand economics and it's frustrating.

    ReplyDelete
  5. great stuff

    here's some poems of a similar ilk

    the world is like a fickle girl
    we're neurons in her head
    and when they all say "go that way"
    she'll quickly change her bed
    ...
    http://thepeakoilpoet.blogspot.com/2011/08/market-is-whore.html


    this story is about a bloke
    who thought he'd save us all
    an economic genius
    with vision and with gall
    ...
    http://thepeakoilpoet.blogspot.com/2011/08/ode-to-paul-krugman.html

    So what are all these "flations"
    that people talk about?
    it's plain that there's at least two sides
    two sides that scream and shout
    ...
    http://thepeakoilpoet.blogspot.com/2011/07/flations.html

    etc

    pop

    ReplyDelete
  6. Excellent! Economics education through limericks. I love it!

    ReplyDelete
  7. Thanks for the kind comments, and thanks especially to Greg Mankiw, whose Ten Principles of Economics could not be improved upon except by adding sex, and to Madeleine Begun Kane, for sustaining the art of the limerick!

    ReplyDelete
  8. Fluid mechanics assignment help : Your service helped me to solve the engineering assignment in a timely manner. I appreciate your professional approach that adds a taste of difference. I tried many writing services before. However, you proved to be the best in technical disciplines. I will recommend your best offers to my college friends. Many thanks! or fother information visit here :Exercise Physiology Assignment Help

    ReplyDelete
  9. We will tell you the best packaging and the best way. If you want good packaging of packaging then visit us. your information is best lip balm boxes
    custom boxes


    ReplyDelete
  10. very interesting information on economic conditions. you can find really interesting products like paper bags with handles on
    Custom boxes

    ReplyDelete
  11. Tech Crunch App - We provide news from all over world. Our site keeps you updated on world latest news, Politics, top trending national news, Travel and more.

    ReplyDelete
  12. My Assignment Help is the most preferred place to get assignment help Australia services where we offer 100% plagiarism free and money back guarantee ensuring complete satisfaction of students with every order. Our subject-specific experts are available 24x7 to provide properly formatted and referenced solutions in any subject from any level in Australian universities.

    ReplyDelete
  13. Very informative and well written post! Quite interesting and nice topic chosen for the post. My Assignment Help Au has been a pioneer within the Best Assignment Help online services and within the Australia and different countries ceaselessly for over Seven years. Make an order now for professional work, delivered on time and pure.

    ReplyDelete
  14. Assignment Help In US by knowledgeable and experienced writers work like magic. When you have doubts about your assignment writing or anything, talk to experts of getassignmenthelponline Get an instant and quick help at reasonable price.

    ReplyDelete
  15. Quicken download error 15500 generally occurs when the installation process was not completely processed. This error can be resolved by our technical experts. Ad the professionals have years of experience and have excelled in this field. You just have to convey the error and the symptoms you are seeing in the installed software. They will revert you within few minutes. Once they mention the solution then you need to apply the steps accordingly. Make sure you do not skip any step else you will not successfully get rid of the issue. The service is active all round the clock, 24*7 to assist the customers.

    ReplyDelete
  16. We are a top-leader, certified, and successful third-party QuickBooks support company, specializing in providing the best QuickBooks support services for QuickBooks users. When you attempt to update QuickBooks, you may experience QuickBooks error 1603. This error code can be occurred due to many reasons such as opening or installing QuickBooks desktop on your computer system. If you don’t have resolutions for this error code, our online QuickBooks professionals are very proficient to solve this error code completely from the origin. Our QuickBooks professionals are available 24 hour to provide instant help for any type of technical errors.
    QuickBooks Error 15215
    quickbooks update error 15215
    quickbooks update error 15270
    QuickBooks Error 6000
    quickbooks install diagnostic tool

    ReplyDelete
  17. Assignment help Perth offers students a team of dedicated experts who are professionals in writing assignments which can be on different subjects such as marketing, finance, nursing or accountancy at a very nominal fee. These professional academic writers offer a simple solution to all of your assignment help requirements.

    ReplyDelete
  18. You had me engaged by reading and you know what? I want to read more about that Assignment help. That's what's used as an amusing post.! You Can Email Us at cs@myassignmenthelpau.com Or Phone Number: +61-2-8005-8227.

    ReplyDelete
  19. Want to get good marks in your database assignment? Then look for services like database assignment help that will help you in complete your assignments under the supervision of top professionals’ writers. So, without waiting much hire us now!

    ReplyDelete
  20. You had me engaged by reading and you know what? I want to read more about that. That's what's used as an amusing post.
    read more:- Accounting Assignment Help

    ReplyDelete
  21. You had me engaged by reading and you know what? I want to read more about that. That's what's used as an amusing post.
    read more:- Accounting Assignment Help

    ReplyDelete
  22. WonderMouse Technology is a Digital marketing company in delhi. We market brands on the web & make sure that you get bang for your buck by SEO, SEM, PPC, SMO, Email Marketing, etc. Internet business is the present and eventual fate of overall exchange. WonderMouse Technology is the pioneer in making Ecommerce a smooth ordeal and top website designing company in Delhi knows it great. The platforms are designed specifically to enhance the consumer panorama of corporate websites. We offer customized and affordable best seo services in india which are designed to the needs, desires and budget of our clients.

    ReplyDelete
  23. I work in Guruji Educational is a Brand deal in online Education through different apps, prepared for the purpose of documenting professional development in the Education field such as
    Logical Reasoning
    English Grammar
    English Stories
    SSC CGL 2020
    English
    PreSchool Learning
    Moral English Stories

    ReplyDelete
  24. My assignment help services online available from our inhouse team of experienced writers can help you raise your grades. We offer adept writing assistance in various subjects like management, statistics, psychology, nursing, computer science, law and engineering. Our assignment helpers are well versed with your university guidelines and ensure that every paper you’re your professor’s expectations in terms of plagiarism free quality work and timely submission.

    ReplyDelete
  25. I work in Guruji Educational is a Brand deal in online Education through different apps, prepared for the purpose of documenting professional development in the Education field such as
    Logical Reasoning
    English Grammar
    Hindi Grammar
    English Stories
    English Stories kids
    SSC CGL
    SSC CGL 2020
    English
    1000 English stories
    PreSchool Learning
    Kids Game
    Moral English Stories
    Moral Stories

    ReplyDelete
  26. Stones International offers professional and tailored Best real estate in Dubai to our wide base of clients. With a diverse team of highly-qualified and experienced client managers on board, we are ready to assist our customers, whether you are a first-time property finder looking to buying properties in Dubai, or an owner planning to sell a property in your possession.
    With ever-competitive Selling properties in Dubai, we can provide you hassle-free property solutions, optimizing the best deals for owners and helping buyers acquire their dream property at the most competitive price.
    We have an extensive selection of properties such as villas, apartments, townhouse, office and retail spaces, plots and land, full buildings and Luxury Properties in Dubai our catalogue, located across a wide range of areas

    ReplyDelete
  27. We are a certified, reliable, and self-governing third party QuickBooks support company, which is providing the best QuickBooks support services in the nominal charges. While updating your QuickBooks, accounting tool, you are experiencing QuickBooks error 1328. This error code takes place due to some unexpected reasons. If you are not able to solve error code 1328, you can call certified QuickBooks professionals to get full support to sort out this error code immediately. Our QuickBooks experts have rich experience to solve this error code instantly, so you can enjoy the best services with your QuickBooks, accounting tool.

    ReplyDelete

Popular Posts