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Understanding Scarcity, Choice, and Resource AllocationWelcome to our third ever blog in our economics masterclass. Today we will be going over and Understanding Scarcity, Choice, and Resource Allocation. [Section 1.4: Scarcity, Choice, and Allocation of Resources The basic economic problem stems from scarcity, where wants are unlimited, but resources are finite, necessitating choices. Optimal utilization and distribution of resources are crucial. For example, when you have only £1 to spend at a shop, you must choose between buying a chocolate bar or a packet of crisps due to the scarcity of money. This leads to the concept of opportunity cost, which is the value of the next best alternative foregone. The opportunity cost of choosing the crisps, in this case, would be the chocolate bar. Economic agents such as consumers, producers, and governments must consider opportunity costs when making decisions. Finite resources require careful allocation to achieve the best outcomes. This section leads on nicely to our first ever some what complex economic theory. Production Possibility Frontiers (PPFs) Production Possibility Frontiers (PPFs) depict the maximum productive potential of an economy by using a combination of two goods or services when resources are fully and efficiently employed. PPF curves illustrate the opportunity cost associated with using scarce resources. Below is an example of a PPF curve for Cheese and yoghurt (tradingview dot com /chart/AAPL/rNnd689O-PPC-GRAPH) An example could be, if milk is a scarce resource, there is a trade-off between producing more cheese or more yogurt from the milk. The PPF showcases the most efficient combinations of output (points A and B), where producing more yogurt incurs an opportunity cost of producing less cheese. The law of diminishing returns states that as more yogurt is produced, the opportunity cost in terms of lost cheese units increases. Points C and D on the PPF represent inefficient production, where resources are not fully utilized. Point E is currently unattainable with the existing resources. (tradingview dot com /chart/AAPL/YRb7mwU2-ppc-grpah-aks/) This PPF shows the opportunity cost of producing each product. Producing 100 units of cheese means that only 40 units of yoghurt can be produced instead of the potential of 90. Therefore, the opportunity cost is 90 - 40 = 50 units of yoghurt. The PPF not only illustrates opportunity costs but can also indicate economic growth or decline. Economic growth is depicted by an outward shift of the PPF curve, indicating an increase in the economy's productive potential. A decline in the economy is represented by an inward shift of the curve. Economic growth can be achieved by increasing the quantity or quality of resources, resulting in an outward shift of the PPF curve. Supply-side policies can facilitate this. Moving along the PPF incurs opportunity costs, while shifting the PPF curve outward reduces the opportunity cost of producing different goods. Productive efficiency is achieved when resources are utilized optimally along the PPF curve, while allocative efficiency involves the optimal distribution of goods in society. We have now covered every section for the first topic behind the A level spec for microeconomics! 4.1 Individuals, firms, markets and market failure ✅ 4.1.1.1 Economic methodology ✅ 4.1.1.2 The nature and purpose of economic activity ✅ 4.1.1.3 Economic resources ✅ 4.1.1.4 Scarcity, choice and the allocation of resources✅ 4.1.1.5 Production possibility diagrams✅
AMEX:SPYEducation
by CosmosTradingGroup
1
$GBPUSD - Sell Side Liquidity at -1 Standard Dev. *SMT*\*SMT* = Smart Money Theory = everything you think that is not retail related to trading. First, SMT does not believe that triangles, wedges , trendlines , channels, harmonics, etc. has any effect on how price reacts. I'm Sorry, but you won't convince me that Bitcoin knows it has created a triangle and that it knows how to react from that? It does and will remember price levels, that's it. The second is to recognize that the price is not random, it is set by an algorithm controlled by those that control the asset. The Third thing to remember is price will move toward attacking where there is Liquidity (Equal Highs, Equal Lows, phantom Trendlines etc.) and Balance (Fair Value Gaps, Liquidity Voids.) That's the basics. The rest is very unique in the vocabulary you need to have and the concepts that wrap around these ideas.* Asian Session Lesson - Doesn't always happen but I believe the way it is forming it will. During the Asian Session the high of that session did break a high from last asian session. If you box in the asian session and draw out the deviations, (1x, 1.5x, 2x, etc. you might find some confluences. Also take note of the opening price at midnight (1.14320). If you notice the rere are equal lows below the current price. Which is where the liquidity lies, where retail traders place their buy limits and sell stops. Usuaully when you see this after an asian session the price will rise during the London session to get you to believe that it's going to continue the trend. However, what smart Money usually does, is they will find a point that may bne higher than the high but usually at a bearish order block near the high or deviation. This is where the Judas swing comes into play. And this will have most retail traders buying into that high. Could drop a little at first ti get even with the current even lows or drop just a little below them. The rise up during London Session, above NY Opening price, That's when you expect price to hit the bearish order block somewhere and start to drop on the other side of the price of hte new york open. In my educated smart money guess, it would het just above the current high and then start plummeting as soon as London is about to slow down 4 am ish. 6 am you see it pixk back up and move up into a breaker or a bearish order block it formed , and fall harderpast the equal lows probably to the -1.5x deviation of the Asion Session, Aroun 1.13200 Here's my two guesses on one chart. Let's see if that's wut Smart Money Wants to do. If it even wants to do that at all. I could be wrong and it just go straight up through the liquidity above. But the equal lows have me against that. Price 1 Attacks Liquidity and 2 Moves towards imbalances I had to add another chart because I have people that follow me that say my numbers are too small so I made one that a=had big numbers for them and it was more focused on the area. I'll update as it goes on when I can. It already looks like price is swinging up though There's a smart Money Lesson for the day Good Luck and Happy Tradin g Bodies X Wix OANDA:GBPUSD
Short
by BodiesXWix
EURUSD ICT OTE Entry, Short sells with logical approaches HTFthe chart basically says it all, Not much for me to expand on here, I believe / hope I am at the point in my trading and studies on this system where I can safely simplify. I hope this marks progress for me in as much as, I can now explain the theory (I believe) ICT is teaching, Loosely of course as OTE was my first venture and now I am expanding my knowledge with the new material. To put it simply I want to see several things happening that line up and present me with a Low risk, High reward entry. IF the HTF Bias is in the direction of the trade and THEN The market moves against the higher move And 1. Sweeps liquidity taking highs or lows 2. Hits an optimal trade retracement of a recent impulse leg (A relevant leg) 3. (this isnt a must but its a bonus) Hits a big figure or mid figure clean number 4. Shows signs of reversal, Displacement, breaks of inside structure, Reversal stages or counter trend exhaustion. THEN: I am presented a low risk opportunity within the confinements of time, This is usually within the LON NY session. With a logical target that I can justify an expectaton of price movement to. THEN I can trade. . . . If you just back test that, you will not only discover positive results, You will start reading the tape and plotting the story while looking at the chart as evidence, This is a superior understanding. This is what I search for, understanding, Knowledge, accuracy in prediction. That's much more that a profitable trade.
by hunterprotocolFX
GBPJPY - Short before Swing Long IdeaLooking at GBPJPY at the close of the March Candle and end of Q1. Price has broken out of the top of the monthly range with heavy bullish pressure. I have two options that could play out in early weeks of April. 1. Price respects the previously Monthly Demand AOI and continues its Bullish Momentum 2. Price Retraces back into the range back down to the Origin of bullish movement that occurred the first week of March. If price is able to break through the weekly AOI we may see the bulls continuing to push higher through the month of April. Disclosure - This is not financial advice. Leveraged trading in foreign currency or off-exchange products on margin carries significant risk and may not be suitable for all investors. We advise you to carefully consider whether trading is appropriate for you based on your personal circumstances. Forex trading involves risk. Losses can exceed deposits. We recommend that you seek independent advice and ensure you fully understand the risks involved before trading.
Short
by WillyumFX
MArgin Trading vs Stock tradingEducational purposes ONLY! I butchered some information. First time doing a video and still learning in the game. *****PIP = Percentage in Price ****** also back then, to participate in Foreign exchange, you need to have a huge capital to have access. Now we can leverage from brokers (Banks that give us access to FOREX) Direct message me for any questions or concern. I hope you to drop some value and help others. I appreciate everyone who support my page :)
COINBASE:DOGEUSDEducation
by forexray25
3
US500 S&P500 Bull market Hello, can you help me? I started to worry about the world of trading in January 2020 and shortly after when the pandemic started and we were confined it was a very useful and interesting hobby. Since the pandemic began and with the confinement, I took courses on the stock market, I read, searched, informed, understood and learned a lot. MANY have earned with platforms like Robinhood ... big amounts of money and that's great but watch out, don't underestimate financial intelligence. From May 2020 until today I have published 65 investment ideas and before this shitty year is over I will reach 100 Thank you for your time share and support L.E.D SPAIN 29/12/2020
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by wallstreetstocks