Creative
Destruction
1. In a free market, what happens
if a price is too high, a product doesn’t work, or service is lousy?
2. Why do you think Mr. Cheung
started making more things for the tourist trade?
3. What motivated telecom
companies to bring cell phones to developing countries? Did they know about the
difficulties faced by boat drivers, butchers, and egg farmers?
4. How does the rapid rollout of
cell phone technology illustrate Adam Smith’s principle of
the “invisible hand”?
5. Who benefits from new
technologies like cell phones? Who loses out?
6. Should government have banned
cell phones in order to protect the jobs of people who made and repaired
landline phones? Why?
7. “Many would say that this
[cell phone technology] revolution did more to give the average person power
and to reduce poverty than any government program.” Do you agree? Why/why not?
8. If goods and services can be
improved or made at lower cost, does it matter whether the cause is technology
or trade?
9. Rather than trying to preserve
obsolete jobs, what are some other ways we could help workers whose skills are
no longer in demand?
10. Why does competition lead to
inequality of outcome? Is that a bad thing?
11. What examples are given in
the video to show that the average person – not just the rich person – is
better off now than 25 years ago? Name 2 other examples?
12. What are some of the ways in
which poor households in the U.S. are better off now than the average household
was in the 1970s?
1. In a free market, what happens if a price is too high, a product doesn’t work, or service is lousy?
ReplyDeleteIn a free market, if a price is too high, a product doesn't work, or service is lousy, someone else can take the market and take over the market.
2. Why do you think Mr. Cheung started making more things for the tourist trade?
I think Mr. Cheung started making more things for the tourists trade because it became a necessity for some.
3. What motivated telecom companies to bring cell phones to developing countries? Did they know about the difficulties faced by boat drivers, butchers, and egg farmers?
What motivated telecom companies to bring cell phones to developing countries was wanting more market share and make more money. I don't think they knew about the difficulties faced by boat drivers, butchers, and egg farmers.
4. How does the rapid rollout of cell phone technology illustrate Adam Smith’s principle of the “invisible hand”?
The rapid rollout of cell phone technology illustrated Adam Smith's principle of the "invisible hand" by the phones' features and capabilities depending on what the consumer prefers to have.
5. Who benefits from new technologies like cell phones? Who loses out?
The people who benefit from new technologies are the wealthy. The ones who loses out are the people that either can't afford them, or the ones that choose not to be connected with the modern world.
6. Should government have banned cell phones in order to protect the jobs of people who made and repaired landline phones? Why?
Government should have not banned cell phones in order to protect the jobs of people who made and repaired landline phones mainly because of economic revolution. There has to be constant change in a society.
7. “Many would say that this [cell phone technology] revolution did more to give the average person power and to reduce poverty than any government program.” Do you agree? Why/why not?
I agree with that statement because businesses are able to check and estimate stocks and make more money instead of loosing it.
8. If goods and services can be improved or made at lower cost, does it matter whether the cause is technology or trade?
If good and services can be improved or made at lower costs, I think that it doesn't matter whether the cause is technology or trade because it would be a lot cheaper to make a product and make more profit when selling it.
9. Rather than trying to preserve obsolete jobs, what are some other ways we could help workers whose skills are no longer in demand?
A way we could help workers whose skills are no longer on demand is by probably giving them a chance to learn another skill that would help them in another, better job.
10. Why does competition lead to inequality of outcome? Is that a bad thing?
Competition leads to inequality of outcome because the consumers are always looking for the best product available. It's not necessarily a bad thing because it's basically a "survival of the fittest" type of economy.
11. What examples are given in the video to show that the average person – not just the rich person – is better off now than 25 years ago? Name 2 other examples?
Examples given in the video to show that the average person is better off now that 25 years ago are the egg farmer being able to estimate egg prices based on the current rate that eggs are being sold for. Another example is the meat that is being sold to consumers. There is no more waiting for meat or meat eating for people.
12. What are some of the ways in which poor households in the U.S. are better off now than the average household was in the 1970s?
Some ways in which poor households are better off now than the average household was in the 1970's are air condition, refrigerators, and many other great innovations.