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January 23, 2021 

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GRAPH: A picture, image, or diagram that is used to display information. Graphs are most commonly used in the economics to depict relations between two variables, that is a two-dimensional graph. The market diagram is perhaps the most noted graph used in economics. This graph reflects the market price on the vertical axis and the quantity exchanged on the horizontal axis. The two key relations depicted on the graph are the demand curve, which is an inverse relation between price and quantity, and the supply curve, which is a direct relation between price and quantity.

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POLITICAL GAME

The political system can be thought of as a game, a contest between two groups of players. Rulers are the ones who set the rules. Rulees are the ones who must abide by the rules. The political game, of course, has serious consequences, with winners and losers. The distribution, either concentrated or dispersed, of these consequences can have a profound effect on the game. The study of public choice provides insight into the economic efficiency with which the political game is played.

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Collecting WELFARE

I know word travels quickly among pedestrians of Shady Valley, but perhaps you haven't heard the latest. Pollyana Pumpernickel, the proprietor of Pollyana's Pet Palace, is no longer a pet proprietor. She's fallen on hard times, and fallen quite hard. Her husband of twelve years, Paul Pumpernickel has dumped her and their three young children to pursue insurance alternatives with Tricia Comer -- Smilin' Ted's sister and business partner in the All Comers Insurance Agency. Pollyana is distraught, to say the least. Paul Pumpernickel had been the dutiful househusband and caring father in his marriage partnership with Pollyana, but those duties fell onto the heavily burdened shoulders of Pollyana. The burden was too much. Pollyana's Pet Palace plundered into oblivion, leaving Pollyana penniless and jobless. Her only alternative was our government's public assistance program -- what you and I know as welfare. She's not pleased with her current social status, and neither, apparently is Winston Smythe Kennsington III, who ridicules poor Pollyana at every opportunity.
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Today, you are likely to spend a great deal of time searching for a specialty store trying to buy either a toaster oven that has convection cooking or a birthday gift for your mother. Be on the lookout for celebrities who speak directly to you through your television.
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Junk bonds are so called because they have a better than 50% chance of default, carrying a Standard & Poor's rating of CC or lower.
"Lead the life that will make you kindly and friendly to everyone about you, and you will be surprised what a happy life you will lead."

-- Charles M. Schwab

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Asia-Pacific Economic Co-operation
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