Card 12 / 25: What does it mean when economists say preferences are subjective?
Answer:
This elementary observation simply refers to the fact that people have different tastes. This is a much more straightforward way of explaining market prices, than to assume that these prices are the result of some "objective" facts (such as how much labor went into the product, etc.). The emphasis on subjective preferences will make more sense in Lesson 6 when we explain barter prices.
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