DEVELOPING YOUR INTUITION.

I've long been a fan of Armen Alchian and William Allen's University Economics (there are variations using different titles that are also useful) in part because of the end-of-chapter imponderables.  As the academic year gets into full swing, here's Econ Log's David Henderson offering one of my favorite questions.

Evidence of the very extent of specialization of knowledge is provided by Albert Einstein’s assertion just prior to his death (Socialist International Information): “The economic anarchy of capitalist society as it exists today is in my view the main cause of our evils. Production is carried on for profit, not for use.” Give evidence of your superiority over Einstein by exposing his error in economic analysis.

It's easy enough to answer if you understand trading for mutual gain, and yet there are enough conscience-cowboys running around who think "production for use" is a Deep Profundity that knowing how to ask the right questions of such a conscience-cowboy is a useful skill.

The post concludes with another Imponderable that will reward careful thought.  "We often see apparently intelligent people, observing that the share of income of the bottom 20% has fallen, argue that the poor are getting poorer."

The reward in teaching, dear reader, whether it is kindergarteners or doctoral candidates, is in allowing the youngsters to grapple with the Imponderables until the penny drops.