praxeology through price theory, lecture 1 with robert murphy - mises academy
DESCRIPTION
For lecture videos, readings, and other class materials, you can sign up for this independent study course at academy.mises.orgTRANSCRIPT
![Page 1: Praxeology Through Price Theory, Lecture 1 with Robert Murphy - Mises Academy](https://reader033.vdocuments.net/reader033/viewer/2022051816/5455b1a1b1af9f40378b49b6/html5/thumbnails/1.jpg)
Mises AcademyAustrian Econ I:
Praxeology Through Price Theory
Robert P. MurphySpring 2011
Lecture 1April 27
![Page 2: Praxeology Through Price Theory, Lecture 1 with Robert Murphy - Mises Academy](https://reader033.vdocuments.net/reader033/viewer/2022051816/5455b1a1b1af9f40378b49b6/html5/thumbnails/2.jpg)
Austrian Econ I1. How the Course WorksII. Purposeful ActionIII. Implications of ActionIV. Classification of Goods
V. Mengerian Hierarchy VI. The Role of Time VII. Marginal Utility
![Page 3: Praxeology Through Price Theory, Lecture 1 with Robert Murphy - Mises Academy](https://reader033.vdocuments.net/reader033/viewer/2022051816/5455b1a1b1af9f40378b49b6/html5/thumbnails/3.jpg)
I. How the Course Works
![Page 4: Praxeology Through Price Theory, Lecture 1 with Robert Murphy - Mises Academy](https://reader033.vdocuments.net/reader033/viewer/2022051816/5455b1a1b1af9f40378b49b6/html5/thumbnails/4.jpg)
II. Purposeful Action vs.Mindless Behavior
![Page 5: Praxeology Through Price Theory, Lecture 1 with Robert Murphy - Mises Academy](https://reader033.vdocuments.net/reader033/viewer/2022051816/5455b1a1b1af9f40378b49b6/html5/thumbnails/5.jpg)
A. “Action” as a Viewpoint
![Page 6: Praxeology Through Price Theory, Lecture 1 with Robert Murphy - Mises Academy](https://reader033.vdocuments.net/reader033/viewer/2022051816/5455b1a1b1af9f40378b49b6/html5/thumbnails/6.jpg)
B. Some definitions
Praxeology: the study of human action.(Contrast with “economics.”)
Means: alterable features of the environment that can be used to achieve ends.(Contrast with “general conditions of action.”)
![Page 7: Praxeology Through Price Theory, Lecture 1 with Robert Murphy - Mises Academy](https://reader033.vdocuments.net/reader033/viewer/2022051816/5455b1a1b1af9f40378b49b6/html5/thumbnails/7.jpg)
C. Prerequisites of Action
●A subjective desire for improvement (“uneasiness” for Mises)
●A theory of how to change the situation (using means)
●Uncertainty about the future
![Page 8: Praxeology Through Price Theory, Lecture 1 with Robert Murphy - Mises Academy](https://reader033.vdocuments.net/reader033/viewer/2022051816/5455b1a1b1af9f40378b49b6/html5/thumbnails/8.jpg)
III. Implications of Action
![Page 9: Praxeology Through Price Theory, Lecture 1 with Robert Murphy - Mises Academy](https://reader033.vdocuments.net/reader033/viewer/2022051816/5455b1a1b1af9f40378b49b6/html5/thumbnails/9.jpg)
A. Only Individuals Act
![Page 10: Praxeology Through Price Theory, Lecture 1 with Robert Murphy - Mises Academy](https://reader033.vdocuments.net/reader033/viewer/2022051816/5455b1a1b1af9f40378b49b6/html5/thumbnails/10.jpg)
B. Individuals Have Preferences
![Page 11: Praxeology Through Price Theory, Lecture 1 with Robert Murphy - Mises Academy](https://reader033.vdocuments.net/reader033/viewer/2022051816/5455b1a1b1af9f40378b49b6/html5/thumbnails/11.jpg)
C. Preferences Are Subjective
![Page 12: Praxeology Through Price Theory, Lecture 1 with Robert Murphy - Mises Academy](https://reader033.vdocuments.net/reader033/viewer/2022051816/5455b1a1b1af9f40378b49b6/html5/thumbnails/12.jpg)
D. Preferences Are a Ranking
![Page 13: Praxeology Through Price Theory, Lecture 1 with Robert Murphy - Mises Academy](https://reader033.vdocuments.net/reader033/viewer/2022051816/5455b1a1b1af9f40378b49b6/html5/thumbnails/13.jpg)
IV. Classification of Goods
1. Producer Goods (aka Means of Production)a. Land (aka Natural Resources)b. Laborc. Capital Goods
2. Consumer Goods� Includes leisure
![Page 14: Praxeology Through Price Theory, Lecture 1 with Robert Murphy - Mises Academy](https://reader033.vdocuments.net/reader033/viewer/2022051816/5455b1a1b1af9f40378b49b6/html5/thumbnails/14.jpg)
V. MENGERIAN HIERARCHYOF GOODS
Consumer goods are “first order” or “lowest order.”
Second-order goods are the land, labor, and capital goods used to produce first-order goods.
Third-order goods are factors used to produce second-order goods…
![Page 15: Praxeology Through Price Theory, Lecture 1 with Robert Murphy - Mises Academy](https://reader033.vdocuments.net/reader033/viewer/2022051816/5455b1a1b1af9f40378b49b6/html5/thumbnails/15.jpg)
VI. The Role of Time
![Page 16: Praxeology Through Price Theory, Lecture 1 with Robert Murphy - Mises Academy](https://reader033.vdocuments.net/reader033/viewer/2022051816/5455b1a1b1af9f40378b49b6/html5/thumbnails/16.jpg)
VII. Goods Valued “on the Margin”
vs.