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Db 2 Econ 214

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Who does inflation help? According to our text “Inflation is the increase in the general level of prices of goods and services”(Gwartney, 2012). Our text goes on to explain that the “purchasing power of a dollar goes down when inflation is present” (Gwartney, 2012). Knowing that the power of a dollar is less one would believe inflation is not really good for anyone in the long run. Inflation can also reduce investments for companies and in some cases slow production of a product or service to a halt. An Economic incentive is any factor (financial or non-financial) that provides a motive for a particular course of action, or stands as a reason for preferring one choice to the alternatives (Cambridge University Press 2013). This shows that non-market production is still an important part of the puzzle when it comes to economics and the incentives that effect our economy on a daily bases. For instance, it can be used to boost the economy in certain areas by given huge taxes breaks. Another way is to allow funding for certain projects in a specific area.
In an article written by Brent Balk the cost of labor without a financial transaction is described as “output prices and there for should be considered a marginal costs” (Balk, 2012). He goes on to compare projects being done that show marginal cost and those that don’t. To the best ideas of what the actual cost of a job or project would be one must consider all sides even the non-market production.

The bible tells us to make sure we have well laid plans in Luke it says "For which of you, intending to build a tower, does not sit down first and count the cost, whether he has enough to finish it” (Luke 14:28). This shows when we make plans to do something we should count all cost, not just the financial but the non-market coast as well. Thing such as the time it takes to make the plans and

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