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A boy walked into a store with many empty pop bottles. The clerk paid for and said: “Big load you had”. The boy smiled: “I’ll be back with more”. Soon he was back. The clerk asked: “Is that all?” “No still more” the boy said.

He was back with bigger bottles hoping they were worth more. The clerk told him “Yes, 5 times, do you have more?”

It went on for a while. The clerk asked what he wanted to do with the money. The boy said: “I want to buy candy and go to a movie. Is that enough?” The clerk did a quick count and said: “One more load” The boy made 2 more trips and went to the candy section. The clerk took the bottles to the back while the boy was choosing, and saw that the he made a good decision based on the price.

“One day you will be a great businessman” said the clerk. “Where did you get the bottles?” The boy replied:” Easy, they were out back of your building.

An interesting study of economics that is based on rule of perceived fairness. If you were to place two people together and gave subject 1 a sum of money like $100 and told them to split it anyways they like between the two of them. As long as subject 2 agrees to the deal they keep the money but if subject 2 says no then neither will get a penny and both walk away empty handed. Studies in Evolutionary Economics show that as long as the split is somewhat fair ( at least 30% going to subject 2 ) the second subject will agree. If it is less than subject 2 would rather both people have nothing than one person with it all. Why Evolutionary? Studies have shown that even primates will make the same decisions as humans showing that this is a built in characteristic brought up through the ages.

If you own any property such as a home or car you can easily qualify for a loan to help you through your financial crunch. By offering your title as security for a loan you can apply and be approved in just one day. In less than 24 hours you can have money in your account and at your disposal. Just make sure that you cover all your bases and know exactly what the terms of your loan are. How much you are borrowing, when your payments are due and how much each payment is. If you default on your loan even just once you run the risk of having your car repossessed and sold off to cover the balance of the loan.

Macroeconomics studies the economy on large scale which means the economy as a whole rather then just the individual pieces that make up the economy. Many factors play into the macroeconomics including money itself. Money is based on two levels M1 which is coins, paper money and some checking accounts and M2 which represent all the less liquid forms of money. The monetary policies that regulate all the money in the world play a big role in how liquid that money is and how easily it spreads around. When policies fail to protect the money in play inflation goes up and our money goes up and prices of common goods go up. Government spending habits also affect the over all macroeconomics especially when you are dealing with spending deficits.

Productivity is all about efficiency in today’s markets. The biggest factor in productivity is the human labour cost. To simply this idea you can look at it as how many people or how many hours a person has to work to produce something. There are other factors in play but the human factor is the greatest. The next biggest factor is technology which allows people to work much faster and more efficiently. One only has to look as far as the mobile phone to see this at work. In days of old one had to travel to talk to another person to find out information. Next came landlines that allowed people to only travel to the nearest phone to communicate and now the phone travels with you always allowing people to be more efficient and productive.

A very common question when trying to determine why you didn’t get that loan you were hoping for. If you don’t have enough monetary resources you may get denied for a loan and like wise if you ask for a high loan amount and don’t have the income to back it up. Make sure you are asking for an amount that coincides with the current income you have. Perhaps the biggest reason is bad credit history. This can be detrimental to getting new loans from common creditors. If you fall into the latter category you will have to find alternative lenders which luckily are increasing in numbers in recent years.

Welfare Economics is the act of trying to predict the financial health of a country by adding the human factor to all the financial graphs and tables. By seeing how much spending power each person has you can more accurately estimate how wealthy a country is when you can gauge how much buying power those below the poverty line have. Democratic countries must see how well they distribute the wealth among all the people inhabiting its land and not just those with high earning power. There is a growing movement to pressure corporations and governments to equalize the living standards and capital of all the citizens in a given country.

It seems that pride and economics go hand in hand in the current credit crunch. The economy is said to be driven by consumer consumption and that consumers spend less as they worry about their livelihoods and homes. This not entirely true since pride comes into play in this social life driven society. In general people will go broke trying to live the life they want their peers to think they have. They will spend money they don’t have on food and drink just to keep up appearances. Much must be considered in pride spending when trying to make any sort of economic outlook.

Getting a loan when you have bad credit is a real pain. You often get outrageous interest rates and payback terms. Help is coming to those with bad credit seeking new loans. There are many new companies popping up offering secured loans for lower amounts and flexible terms. Make sure you don’t apply to them all at once since you will be red flagged and most likely denied. Make sure to poke around the major banks and see what each one has to offer to get the best possible deal and terms. Stay away from shoddy sound too goo to be true operations that will leave you broke and with worse credit than when you started.

Just when you think you scored a great deal by finding that huge discount you will be surprised to know that you will actually end up paying more in a true cost. While bargains look good on the inside they come with a hidden cost. Cheap products require a low cost of production which means cheap labour and poor working conditions. Once the boundary gets pushed too far those workers rebel and violence and wars start. That great deal you got on those jeans doesn’t look so good now does it? Make sure you know what you are really paying.