Tuesday, September 05, 2006
Economics & Caribbean Pirates Rules
I admit that I was not a big fan of Johnny Depp until the first part of Caribbean Pirates. Among so many remarkable lines of this movie one what I like most as an economist is this:
“The only rules that really matter are these: what a man can do and what a man can't do. For instance, you can accept that your father was a pirate and a good man or you can't. But pirate is in your blood, boy, so you'll have to square with that some day. And me, for example, I can let you drown, but I can't bring this ship into Tortuga all by me onesies, savvy? So, can you sail under the command of a pirate, or can you not?”
Economics has so many different notions for “what a man can do and what a man can’t do” Production Possibility Frontier, Budget Line, Production Function, Iso Costs and etc. showing Mr and Mrs Customer's resources or market prices what they can do and what they can't do.
Their decisions are based on both what-they-can-do and what-they-can't-do. And What-they- can't-do ones constitute their opportunity cost.
In its very nature these are the only rules that really matter, because economics tries to find a solution to our unbounded demands given or limited resources. So we all can reach Tortuga.