Saturday, February 21, 2009

Economics in Music

Examine this conversation in Barenaked Ladies' "If I had $100000:

Singer 1: If I had a million dollars/We wouldn't have to eat Kraft Dinner
Singer 2: But we would eat Kraft Dinner
Singer 1: Of course we would, we’d just eat more
Singer 2: And buy really expensive ketchups with it
Singer 1:That's right, all the fanciest ketchup.

What type of good do these singers believe Kraft dinner to be (Normal/Inferior)? How do you know? What is Ketchup's relationship to Kraft Dinner? Explain.

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Compared with the totality of knowledge which is continually utilized in the evolution of a dynamic civilization, the difference between the knowledge that the wisest and that which the most ignorant individual can deliberately employ is comparatively insignificant. ~Fredrich Hayek in The Constitution of Liberty