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[morcan]

Can you explain why economics fail including these terms
opportunity cost
Incentives
Prices
Property rights
transaction costs

I know what they all mean but I can't make sense of how these connect with the collapse of economic

[giulio]

It's all to do what people will buy with money. That's really how our economy is falling, people don't want to buy or hire.

[max]

Economic collapse and opportunity costs = You rather invest or save or stash your 'wealth' in something less tangible than dollars ie/ invest your money not only in real estate, but into a farm, where by you can produce food (food that can be sold for profit). Real estate is an investment today because there is 'speculation' it will hold or increase in value.

Property rights. If there is economic collapse ... there is a good chance that along with the loss of dollar values and debts, there will be No Property rights left.

Incentives: Gov't may spur interest or incentives for investors or consumers to stay interested in the current market. Faith. Consumers/ Investors' must have FAITH in the current market for it to stay alive and stable. With out incentives (good returns for your money; interest or profit) you lose FAITH.

Prices: MUST be stable. or else inflation will pose problems for workers spending their hard earned dollars. Prices are NOT stable, then employers will have to raise their costs by increasing wages paid to their employees. Inflation could lead to increases in interest rates, which would cause more problems in the work force; in banking industry; could cause economic collapse too.

Transaction costs: not really sure what the linkage to economic collapse. I would think if the cost is NOT competitive and too high. Less people would be interested in making fewer transactions. That in the end could cause financial collapse (financial sector depends a certain volume of transactions to stay a float)

hope that helps ?