> temp > chaines-yt > crash-course-economics > markets-efficiency-and-price-signals-crash-course-economics-19

Markets, Efficiency, and Price Signals: Crash Course Economics #19

CrashCourse - 2016-01-06

Adriene and Jacob teach you all about markets. So, in free market(ish) economies like the United States and most of the world, markets are a big deal. Markets work to produce the stuff that consumers want, and that society needs. Today we'll talk about productive and allocative efficiency, skinny jeans, price signals, and more in this information-dense installment of Crash Course.

Crash Course is on Patreon! You can support us directly by signing up at http://www.patreon.com/crashcourse

Thanks to the following Patrons for their generous monthly contributions that help keep Crash Course free for everyone forever:

Mark, Eric Kitchen, Jessica Wode, Jeffrey Thompson, Steve Marshall, Moritz Schmidt, Robert Kunz, Tim Curwick, Jason A Saslow, SR Foxley, Elliot Beter, Jacob Ash, Christian, Jan Schmid, Jirat, Christy Huddleston, Daniel Baulig, Chris Peters, Anna-Ester Volozh, Ian Dundore, Caleb Weeks

--

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Nick Zamora - 2016-01-07

The fake ending was the most hilarious thing I've ever seen on any Crash Course series. It was so unexpected.

Naturea Bioros - 2018-05-08

Nick Zamora “fake” ending

Stephen Otondi - 2018-07-23

my favorite ending ever

cindy zhang - 2019-05-15

@zealousdemon Yeahhhhhh

joey cao - 2019-08-14

Do-do-do-do, do... Now, there are some... (Why Mr Clifford doesn't say DFTBA :/)

Batshit Crazy - 2019-08-18

Nick Zamora are you a Filipino

Ruth Less - 2016-09-11

I'm watching this on my iPad in skinny jeans...

Andrew - 2017-05-16

Ruth Less skinny jeans aren't on the way out, people who can wear them are 😂

Rowan Brown - 2020-03-30

Ruth Less huh

josh mcgee - 2016-01-06

"There's tons of examples that corporate greed, inequality and disregard for the environment that make people wonder if markets are evil. And they are! Thanks for watching!"

SchiferlED - 2016-01-09

@grantcivyt An unregulated free market allows for cases in which freedoms are infringed upon, which is why I made my assumption, based on your previous statements.

As for "no forced requirements for basic survival", I mean that in order for someone to be considered truly "free", there must not be a requirement to perform labor in order to obtain the resources necessary to sustain a healthy life.

grantcivyt - 2016-01-09

+SchiferlED There is no system that doesn't allow freedoms to be infringed upon. There are bad people always, and nothing is perfect. The only relevant question is which system minimizes such infringement. I believe that system is one in which people are free to organize themselves and their affairs without the heavy hand of government forcing their compliance.


It seems to me that your definition of free is problematic in that it ignores freedom in the supply side. How do you provide the food, clothing, water, housing, etc. without infringing the right of the supplier? Not to mention that your definition of a "healthy life" is very vague, but it would likely offend the people that work for their livelihood for being unjust. I believe your position stems from a noble and moral sense of responsibility toward your neighbor, and I commend you for that. I share that sense. The only question here is whether you have the right to force your moral stance on others.

josh mcgee - 2016-10-21

@Simple Ton "why don't you just starve to death idiot"

Simple Ton - 2016-10-22

go hug a tree sissy

thebloodykansan - 2018-05-26

God, if only they'd ended it there...

Saeed Baig - 2016-10-27

4:32-4:37=I think u misspoke. U said "Competition between businesses keep prices and quality up". I think u meant 2 say "Competition between businesses keep prices down and quality up".

thekaxmax - 2020-04-08

ah, depends if it's real competition and they act fairly. Otherwise that's accurate.

Pigou7x - 2016-07-06

Main outtakes of the lesson
:
1. Central planning is not efficient
2. Two types of efficiency:
a) Productive Efficiency- The idea that products are made at lowest costs.
b) Allocative Efficiency- State of economy in which production represents consumer's preference.
3. Central planners are less likely to be allocatively efficient because they have a harder time getting feedback about what people want.
4. Price Signals tells you what consumers are willing to by at higher prices.
5. Price gouging: When sellers sells essential items (e.g water, food etc) at much higher price than reasonable.
6. Below-Cost Pricing: This is also called Predatory Pricing. It's when a business drive out competitors by charging lower prices even at a short-term loss. Competitors that can't sustain such low prices will be forced out of the market giving the surviving businesses more market share and ability to raise prices.
7. I'm Batman!!

smile444 - 2018-10-21

why so serious ? :P

yumusic - 2018-11-26

Hi Batman !

Atlas Production - 2019-07-16

thanks

WrathOfMega - 2016-01-07

This is cool and all, but what I really need is some CrashCourse: Calculus

Nicolino Will - 2016-07-05

+664bomber Agreed!

james mcloughlin - 2016-07-06

En taro Adun

Saeed Baig - 2016-10-27

Try the first few episodes of Crash Course Physics. They go into detail about calculus.

Briana Corrielus - 2018-09-11

Ikr

Kaiser Wilhelm II - 2019-03-13

Professor Leonard on youtube

Rick Apocalypse - 2016-01-06

Great message at the end. "Be the change you want to see in the world".

Miranox - 2016-01-07

+Rick Apocalypse Nah, I think I'll just keep complaining on Twitter. I'm sure that will change the world. Eventually. Maybe.

Krombopulos Michael - 2016-01-07

+Miranox well it can. If enough people are angry about a certain corporation's practice, it is possible that the bad PR will make them change.

Miranox - 2016-01-07

@Krombopulos Michael
You should check out John Oliver's episode about fashion to see how corporations "change".

Isak Viklund - 2016-01-06

I wish that you would eventually do a series on Language and linguistics (Grammar).

Orangemandarin - 2016-01-07

+Robert Eklund agrEEEEEED

Theresa May - 2016-01-07

YES! DEAR GOD YES!

Although linguistics isn't nearly as mainstream or as popular as things like history or economics, so they probably won't do it. But if they did...you can be sure they would be getting some Patreon support from me.

児Z - 2016-01-08

+Robert Eklund YESSSSSSSSSSSS

Ira Bakri - 2016-05-19

+Robert Eklund YESSS, I really need this

Nerd Mommy - 2018-04-25

YES

Sully Flynn - 2016-06-18

There is a MARKET out there for a Maths Crash Course that YOU need to enter!

John Koh - 2016-06-25

haha great comment imo

Aidan Fitzgerald - 2016-11-20

Sully Flynn and a computer science one!

icekilla don - 2017-01-29

and electrical engineering

Conor Slattery - 2017-02-21

Aidan Fitzgerald they listened to you

Rowan Brown - 2020-03-30

“Eh, close enough”

Matthew D Gilpin - 2019-03-18

6:23 "Oh this crucial medication/equipment is too expensive for me to buy. It's cool. Guess I'll just die, then."

Million Dollar Rabies - 2016-01-06

USSR market research:

"Okay would you like Russia to make more military, or make more music."

"I um, well, if it's not too much to ask, I would actually like more music."

"Ah, so you think that Russia government spend too much money on keeping country safe, and not enough money make country fun?"

"...Da?"

"GUARDS, SEIZE HIM!"

Kenny Zhang - 2016-01-10

+Diana, the Inorganic Vegan sound so familiar to a country I know

joao pedro - 2018-12-23

To the gulag with you !

Mark Graham - 2016-01-06

Yay! More economics!

superholy345q - 2016-01-06

Said no student ever

TheAXXELLALAN - 2016-01-06

I honestly think economics is the most boring crash course subject.

Joi Scott - 2016-01-06

+TheAXXELLALAN well it's my personal favorite

Anulekha Sistla - 2019-06-03

@Joi Scott
Agreed

Pepijn Vink - 2016-01-06

Price gouging #MartinShkreli

Brap - 2016-01-06

+Pepijn Vink I heard that a competitor is selling the same drug for one dollar per bottle.
MARTIN SHKRELI BTFO

Marylandbrony - 2016-01-07

+Pepijn Vink #Apu Hahasapeemapetilon

Nick Baxter - 2017-09-06

Sorta, but he was selling the drug to individual people for cheap if they needed it, it was only if the drug was being paid for by health insurance companies he would ramp up the price. Kinda like a middle finger to health insurance companies, as they're the only ones that lose out of this.

G G - 2018-02-01

“If you don’t like the corporation don’t buy from them.” Actually I study economics so I also know boycotts don’t work, nice try though.

TheFireflyGrave - 2016-01-06

The bit about Walmart leaving Germany fascinated me. From what I looked up, the answer about how this happened may be more complicated.
http://www.huffingtonpost.com/david-macaray/why-did-walmart-leave-ger_b_940542.html

Naveen - 2016-01-06

"If you put the federal government in charge of the Sahara Desert, in 5 years there'd be a shortage of sand." - Milton Friedman

Sylvia Metzner - 2016-01-08

+Naveen I'm pretty sure there is a shortage of sand

Vaibhav Gupta - 2016-01-08

+Naveen such vague statements belong to religions, don't make economics a religion.

Tim Tian - 2016-01-09

I hear they buy a lot of sand from Australia, so I guess they'd just start buying more?

Peter S - 2016-01-11

+Vaibhav Gupta I noticed watching Milton Friedman vids that he is very fond of deflecting awkward questions with jokes and witty anecdotes that don't really answer, but the audience go crazy for them.

Vaibhav Gupta - 2016-01-13

@Peter S when ever i watch his interview i can tell already he is going to go after gov't and unions. very predictable.

A. G. B - 2016-01-06

Yay! Been waiting for a new episode!! I am loving this series. Economics is a topic that I find fascinating (^_^)

Tevo77777 - 2016-01-09

+orayole


Oh no, this "Crash Course" provides quick and dirty information.

How dare they provide a beginners guide!

Uhohhotdog Gaming - 2016-01-11

@Tevo77777
problem is not that it's a beginner guide, it's a biased beginner guide.  It focuses on capitalism too much and not enough on how the economy actually works.

Tevo77777 - 2016-01-11

@orayole

Capitalism is how the system works.

Uhohhotdog Gaming - 2016-01-11

@Tevo77777
 What system?  This is supposed to be a lesson on economics, not US economics.

Peter S - 2016-01-11

+orayole Maybe they will get around to Marxism etc, but capitalism in one form or another is nearly universal at this point in the game so everything else can be considered 'alternative'. North Korea is literally the only place I can think of that isn't at least part-way capitalist.

Amanda Richardson - 2018-11-20

Others "Where'd yo get your degree?"
Me " YouTube"

V - 2016-04-05

at 4:32 i think you forgot a word. you should've said "competition keeps prices low and quality up"

Levi Howell - 2016-01-07

Make a video about what a healthcare system could look like with a true FREE market... Price gouging, Insurance exclusion, and refusal to treat. Another real life free market problem that is never mentioned in the United States in any Econ class I've ever taken

Tevo77777 - 2016-01-12

@Mark Efreet

The ammo problem is because preppers and hoarders are constantly buying thousands of rounds at time, or there are people setting the ammo aside to scalp it.

There is no account of a goverment warehouse where this ammo is hoarded or fired, it's just that demand is so insane that supply hasn't managed to fix the problem. 

A single person just plinking can go through 500 to a 1000 rounds easily, without even meaning to. 

Mark Efreet - 2016-01-12

+Tevo77777 then why the fuck are you sitting on your lazy ass? why not get a loan from the bank and start producing .22's and make a killing?

Tevo77777 - 2016-01-12

@Mark Efreet

You first. You're the free-market libertarian, you hop to it.

Mark Efreet - 2016-01-12

+Tevo77777 yeah? it's your market analysis.

Rhys F. - 2017-12-22

That's because you're talking about a fictional scenario you nitwit. Yea, they don't teach stuff that is purely speculative in an econ class, why would they?

Iznikroc - 2016-01-07

WHAT?! where's the silver AC/DC buckle?! I DON'T LIKE CHANGE!

Zach Crennen - 2016-01-06

did anybody else notice that one person in the thought bubble had a hot line bling sweater?

Luca Fanciullini - 2020-01-12

3:19 hey Crash Course, nice quote from Linus Tech Tips!!

Bobo The Talking Clown - 2016-05-20

man if only there was some sort of system in place to allow people to act collectively and enforce rules on society


like some sort of 'governing' agency

a 'government' if you will

Rhys F. - 2017-12-22

There is and it runs a bigger deficit annually than any corporation on earth :)

Frake.e - 2018-12-05

9:04 that really made me think the video was over

Undefined Variable - 2019-09-04

3:42 Bring this up next time you have participate in one of those mandatory office secret santas, and tell your santa to just give you the envelope with the cash.

satyreyes - 2016-01-06

4:32: "Competition between businesses keeps prices and quality up." I suspect you only meant half of that. :)

Snigdha Kucharlapati - 2016-01-07

I'm watching this on a tablet rn, you kinda creeped me out 😂

Josh Elliott - 2016-01-07

+Snigdha Kucharlapati Are you also wearing skinny jeans? :)

dot Kiarika - 2016-01-07

+Josh E (Hal 3K) I am O.O

Kenny Zhang - 2016-01-10

+dot Kiarika lol

Luis Sierra - 2016-10-23

9:01 HAHAHAHAHAHAHAHAHAH LOOOOOOLLLLLL!

Levi King - 2016-01-07

i read that Rockefeller once said (while being cheeky to the interviewer), "It's strange that the price I charge for oil is both so high I'm gouging consumers and so low I'm driving out competition - if they would just tell me what to charge it would be a lot easier."

Bryan Wheelock - 2016-04-09

"Despite its scientific pretensions, economics still remains more of an art than a science."

BunnyFett - 2016-01-08

Hahaha, that fake ending! I almost choked on my tea from laughing.

Multilingualtricker - 2017-06-30

"Supply and demand" determine what gets produced @28 seconds.
i understand how demand determines this but what about supply?

Rahul Puri - 2016-01-22

I am in love with this class as well as Adriene hill.. :D

Sitesh Singh - 2018-09-30

Cool Professor Jacob Clifford got me at the ending 😂

Jonty Bryce - 2019-01-28

I’d just like too take a minute too say... Primeval was a really good and underrated show, 10/10 would recommend.

James Carmody - 2017-11-13

3:56 Golden Rule to reduce resource waste:

Don't buy what you don't need.

Nerd Mommy - 2018-04-25

Love love love this episode. You have no idea how much I am binge watching this playlist.

Chris Gillies - 2016-07-17

I'm wearing skinny jeans and I'm on a tablet :')

Stuart William - 2016-01-08

Adriene Hill reminds me of Kyle, and his behaviour, at the end out an episode of South Park.

Brandon G - 2016-01-07

Love all the hidden jokes in the animations.

Stephen Davis - 2016-01-09

"Can't force you to buy their stuff."
They can if they're the only place in town, you're strapped for cash, or you only have a few minutes a day to shop.

Pablo Peniche - 2016-01-06

I've been waiting for this video for soooooo long! Please don't stop making this economics videos

Marie Erikson - 2019-11-29

It's November 2019 and people still wear skinny jeans

DatHam - 2016-01-06

you should do a programming series




that would be great

jeray2000 - 2016-01-07

+DatHam It wouldn't work. Programming is actually extremely easy to learn; there's really only five concepts to it. The tough part of it is logic, and being able to train your brain to solve logic problems quickly. That's not something a video series like Crash Course can do.

Vanessa Leighton - 2016-01-09

+Caleb Limb Well, as a solution they could make a new channel that is focused on teaching how to do things like programming and promote it through Crash Course.

Brendan - 2016-05-18

yes






yes it would

Captain Cal - 2017-06-16

What a time to be alive, folks. They have Computer Science CC now.

Rowan Brown - 2020-03-30

DatHam yes

EnterTheDutch - 2017-06-05

You guys just covered an entire chapter of my finance exam. Thanks!

kautheraw - 2016-01-23

3:35
Johnny Depp?

Zane A - 2017-07-27

I watched the previous video in 1.5X speed before bed, the next morning ( today) I couldn't say goodmorning without stumbling over my words!

coscorrodrift - 2018-03-16

Some key insights I found interesting in this video: Walmart being the quickest to respond in hurricanes and doing it responsibly actually benefitted them, and not only in reputation, that's neat.

ocampoawsome - 2016-05-26

I haven't laughed so hard in a long time. That false ending was fantastic.