, and he devoted the better part of his life to teaching what he called “the economic way of thinking” to undergraduates at the University of Washington in Seattle. ..."
by Dr. Paul Heyne
" The following speech was delivered by the late Paul Heyne, professor of economics at the University of Washington, at a 1997 conference at the University of Manitoba at Winnipeg addressing the state of undergraduate education."
• The basic supply and demand model is developed and applied with many updated examples in Chapters 5 and 6. These chapters (formerly Chapters 4 and 5) have been thoroughly rewritten. We further clarify a continuing theme in all previous editions of The Economic Way of Thinking – the market as a coordinating process. Quantities demanded and supplied are interpreted as plans among consumers and producers. Market clearing is discussed as a meshing of these plans and as an unintended consequence of individual economizing behavior. The problem of nonmarket (socialist) coordination is discussed as well.
But this essay is not a sermon. It is simply an introduction to an extremely important principle of the economic way of thinking. Realizing that all our choices entail costs that often go unrecognized might prove to be one of the important lessons we learn in life.