Assumptions make complex economic processes simple. For example, suppose we have to understand the complex process of international trade. Economists can assume a scenario with just two countries. Furthermore, they may assume that each country specializes in just one product. Thus each country exports...
22K There are various forms of consumer theories in economics that explain how or why a customer may choose to buy something and when. Learn more about the motivation of customers, maximizing utility, decision making, incentives and preferences. Related...
assume their own immunity to the biases that they accuse others of displaying. If they cared to think about many of these cases of “irrationality” from the perspectives of the people they try to regulate, they would realize that their view of human beh...
Economists typically assume that risk compensation is uniformly self-protective – that people become more careful as the health risks of their actions increase. However, riskseeking, or fatalistic, responses can also be rational: increa... J Kerwin 被引量: 5发表: 2014年 Never Confuse Efficiency...
To make the example simple, we assume that there is only one type of automobile factory and that all oil rigs are identical. In order to know “how much” capital of each type there is, all we need to do is count. Table 2 shows the number of each of these “real assets”: Column...
8. That we assume costs of rationality are zero, and people can make rational decisions intertemporally and across the full domain of goods. 9. That we can assume a unique aggregate equilibrium. Vision, Judgment, and Disagreement Among Economists I could continue with this list, but the...
Finally, let us see what EPS looks like if we assume a severe lockdown scenario. This is a scenario where the lockdown is as punitive as it was in autumn-winter 2020 and we assume that businesses and consumers have not adapted since then. I do not believe that this is a reasonable es...
As economists assume, incorrectly according to the latest trade theory byRalph Gomory and William Baumol,that free trade is always mutually beneficial, economists have failed to examine the devastatingly harmful effects of offshoring. The more intelligent among them who point it out are dismissed as“...
Neo-classicaleconomists assume thatpeople make rational decisionswhen purchasing or investing in the economy. Prices are determined by supply and demand while there are no outside forces impacting prices. Consumers strive to maximize utility or their needs and wants. Maximizing utility is a key tenet...
In this context, the corporations which pay, outside their legal obligations, social responsibility, really want to help people, but also build their story about their place in the world and the re-sponsibilities which they choose to assume. The economic activity being an integral part of the...