Friday, September 5, 2014

Econos Simulation 9/5/14

Today in class, we simulated a very interesting topic. There we two groups of people; there was the Entrepreneurs (who were given 2000$ fake) and the Households (who were given resources such as Natural, Human, and Capitol). The objective for the Entrepreneurs was to make as much fake cash as possible, while for the household's goal was to make as many Econos as possible. Econos were completely made up and had no real value, but were given value by the fact that we (Households) wanted them. In order to get Econos, we had to trade in a set of resources. But in order to trade them in, we had to give them to an Entrepreneur to do the trading with Mr. Stewart. I decided get as many resources as possible by buying low and selling high. This meant that I would trade in my set of resources, then use the Ecnono I got and traded that with another classmate for 2 sets of resources. MANY people fell into my trap. The fake money that Entrepreneurs were given had no value at all because we never gave it value. They would do the trading for free, so we had no interest in fake money. This was a very cool lesson on economy and I look forward to more simulations like this.

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