The Opportunity Costs of Rent Seeking
... II. The costs of theft We start with the example of thieves, whom we treat as rent-seekers. Thieves consume resources in the form of guns, crowbars, etc. in their efforts to break into houses and steal goods. With perfect competition in all markets the quantity of resources invested in burglary equ ...
... II. The costs of theft We start with the example of thieves, whom we treat as rent-seekers. Thieves consume resources in the form of guns, crowbars, etc. in their efforts to break into houses and steal goods. With perfect competition in all markets the quantity of resources invested in burglary equ ...
Homo Economicus Goes to War - UCLA Division of Social Sciences
... presumption is that wars start with the decision of rebels and the analysis abstracts from much of state policy and from state violence. There is no discussion of where the ‘‘players’’ come from other than as the product of relevant economistic calculations, to be discussed below. While in some mode ...
... presumption is that wars start with the decision of rebels and the analysis abstracts from much of state policy and from state violence. There is no discussion of where the ‘‘players’’ come from other than as the product of relevant economistic calculations, to be discussed below. While in some mode ...
Perfect Competition
... example is $3.50 per box of floppy disks. The marginal revenue gained from selling one additional box of floppy disks is just the price of that unit. Since a perfectly competitive firm is a price-taker, it can sell whatever quantity it wishes at the market-determined price. Marginal cost, the cost p ...
... example is $3.50 per box of floppy disks. The marginal revenue gained from selling one additional box of floppy disks is just the price of that unit. Since a perfectly competitive firm is a price-taker, it can sell whatever quantity it wishes at the market-determined price. Marginal cost, the cost p ...
Meaning of Production Function
... In the table, fixed input land of 4 acres, units of the variable factor labour are employed and the resultant output is obtained. The production function is revealed in the first two columns. The average product and marginal product columns are derived from the total product column. The average prod ...
... In the table, fixed input land of 4 acres, units of the variable factor labour are employed and the resultant output is obtained. The production function is revealed in the first two columns. The average product and marginal product columns are derived from the total product column. The average prod ...
An Observation for Integrating JR Commons` Concept of Order and
... economy is constituted by the mode of régulation. They appear to be similar in that they define as “institutional compromise” or “order” the way of social economy deriving from “the mode of régulation,” but actually they have quite large differences when closely observed. This paper focuses on these ...
... economy is constituted by the mode of régulation. They appear to be similar in that they define as “institutional compromise” or “order” the way of social economy deriving from “the mode of régulation,” but actually they have quite large differences when closely observed. This paper focuses on these ...
full paper
... and if so, then how. The emphasis placed by Heilbroner on vision and his position on valuefreedom in economics are both related to his position on ideology and must also be examined further. What is required is an examination of Heilbroner’s philosophy of economics. This chapter will attempt this ex ...
... and if so, then how. The emphasis placed by Heilbroner on vision and his position on valuefreedom in economics are both related to his position on ideology and must also be examined further. What is required is an examination of Heilbroner’s philosophy of economics. This chapter will attempt this ex ...
92. Whither the Welfare State: Public versus Private Consumption?
... labour theory of value - the availability of consumption for those who do not work in the physical form of goods suffices to demonstrate the presence of exploitation. Consequently, the modern version of Ricardian socialism, derived from the work of Sraffa, rejects the labour theory of value on analy ...
... labour theory of value - the availability of consumption for those who do not work in the physical form of goods suffices to demonstrate the presence of exploitation. Consequently, the modern version of Ricardian socialism, derived from the work of Sraffa, rejects the labour theory of value on analy ...
Are We Consuming Too Much?
... Weyant (1999) contain diverse arguments concerning the appropriate choice of ␦. One interesting aspect of the optimal consumption path according to the maximize present value criterion is that it can be linked, theoretically, to the outcome of a decentralized market economy. In a fully competitive e ...
... Weyant (1999) contain diverse arguments concerning the appropriate choice of ␦. One interesting aspect of the optimal consumption path according to the maximize present value criterion is that it can be linked, theoretically, to the outcome of a decentralized market economy. In a fully competitive e ...
Using Supply and Demand
... If a temporary increase in the demand for housing is expected, rent controls may be effective. This would create a temporary shortage of housing, but it would prevent high prices and a windfall to landlords. ...
... If a temporary increase in the demand for housing is expected, rent controls may be effective. This would create a temporary shortage of housing, but it would prevent high prices and a windfall to landlords. ...
Consumer Sovereignty: the Key to Mises`s Economics (revised)
... the aim of which is to evaluate arguments in favor of and against market intervention.1 To evaluate an interventionist argument, one needs an image of a pure market economy. So Mises built an image of this economy in the spirit of the Austrian theory of value and cost and marginal productivity theor ...
... the aim of which is to evaluate arguments in favor of and against market intervention.1 To evaluate an interventionist argument, one needs an image of a pure market economy. So Mises built an image of this economy in the spirit of the Austrian theory of value and cost and marginal productivity theor ...
Working Paper No. 313
... also satisfies balancing in realization with certainty in a case that all the individuals are identical; (ii) to discuss the possibility of requiring a condition of balancing in realization when individuals are not identical; and (iii) to give an example where the rationing proportion depends on the ...
... also satisfies balancing in realization with certainty in a case that all the individuals are identical; (ii) to discuss the possibility of requiring a condition of balancing in realization when individuals are not identical; and (iii) to give an example where the rationing proportion depends on the ...
Debunking the theory of the firm—a chronology
... maximized by equating marginal cost and marginal revenue”. The proof simply differentiates (1.2) with respect to q i. However, the individual firm’s profit is a function, not only of its own output, but of that of all other firms in the industry. This is true regardless of whether the firm reacts st ...
... maximized by equating marginal cost and marginal revenue”. The proof simply differentiates (1.2) with respect to q i. However, the individual firm’s profit is a function, not only of its own output, but of that of all other firms in the industry. This is true regardless of whether the firm reacts st ...
Deadweight Loss
... in consumption or production that makes one person better off must make someone else worse off. • Efficiency is not the same thing as equality. An efficient outcome can coexist with an unequal outcome. ...
... in consumption or production that makes one person better off must make someone else worse off. • Efficiency is not the same thing as equality. An efficient outcome can coexist with an unequal outcome. ...
View PDF - CiteSeerX
... The result is remarkable, considering that the original situations are often ambiguous,2 frequently involving a large number of agents with contradictory conceptions and interests, and that the quality and characteristics of the goods are often extremely uncertain. The effectiveness of markets stems ...
... The result is remarkable, considering that the original situations are often ambiguous,2 frequently involving a large number of agents with contradictory conceptions and interests, and that the quality and characteristics of the goods are often extremely uncertain. The effectiveness of markets stems ...
Long-run welfare under externalities in consumption, leisure, and
... Of particular interest for our paper is the stream of literature that focuses on the macroeconomic consequences of the “keeping up with the Joneses” assumption — i.e., individuals struggling to keep up with the social position of their representative neighbor. Ljungqvist and Uhlig (2000) analyze the ...
... Of particular interest for our paper is the stream of literature that focuses on the macroeconomic consequences of the “keeping up with the Joneses” assumption — i.e., individuals struggling to keep up with the social position of their representative neighbor. Ljungqvist and Uhlig (2000) analyze the ...
Theory of Consumer Behavior
... demanded went up when the price of the good went down. We pointed out that as the price of a good falls, individuals will substitute some of that good for other goods. Additionally, given a fixed budget, when the price of a good goes down, with all other prices remaining the same, that person’s buyi ...
... demanded went up when the price of the good went down. We pointed out that as the price of a good falls, individuals will substitute some of that good for other goods. Additionally, given a fixed budget, when the price of a good goes down, with all other prices remaining the same, that person’s buyi ...
Diapositiva 1 - University of York
... Temporary Equilibrium model] it is necessary to assume that prices remain unchanged throughout the single period; and that these prices are equilibrium prices which, within the single period, equate supplies and demands. In order to visualize this, some such construction as my “week” and my “Monday” ...
... Temporary Equilibrium model] it is necessary to assume that prices remain unchanged throughout the single period; and that these prices are equilibrium prices which, within the single period, equate supplies and demands. In order to visualize this, some such construction as my “week” and my “Monday” ...
PDF
... There is ample theoretical and empirical evidence that voluntary pollution abatement may be demand driven through consumers' altruistic preferences for environmental attributes. Demand driven voluntary abatement that is altruistically motivated implies that: • Traditional regulatory policies will be ...
... There is ample theoretical and empirical evidence that voluntary pollution abatement may be demand driven through consumers' altruistic preferences for environmental attributes. Demand driven voluntary abatement that is altruistically motivated implies that: • Traditional regulatory policies will be ...
Austrian Economics—The Ultimate Achievement of an Intellectual
... Every man who, in the course of economic life, takes a choice between the satisfaction of one need as against another, eo ipso makes a judgment of value. Such judgments of value at once include only the very satisfaction of the need itself; and from this they reflect back upon the goods of a lower, ...
... Every man who, in the course of economic life, takes a choice between the satisfaction of one need as against another, eo ipso makes a judgment of value. Such judgments of value at once include only the very satisfaction of the need itself; and from this they reflect back upon the goods of a lower, ...
Algebraic Production Functions and Their Uses Before Cobb
... technological relationship. It describes the maximum output obtainable, at the existing state of technological knowledge, from given amounts of factor inputs. Put differently, a production function is simply a set of recipes or techniques for combining inputs to produce output. Only efficient techni ...
... technological relationship. It describes the maximum output obtainable, at the existing state of technological knowledge, from given amounts of factor inputs. Put differently, a production function is simply a set of recipes or techniques for combining inputs to produce output. Only efficient techni ...
1 Hume`s specie-flow mechanism and the 16 century price
... On the other hand, in his essay “On the balance of trade”, published in 1752 as part of the Political Discourses, Hume resorts to a “general argument” because of the poor data. Hume’s actual practice contradicts his theory of induction, but fits in nicely with what Mill (1836) describes as the only ...
... On the other hand, in his essay “On the balance of trade”, published in 1752 as part of the Political Discourses, Hume resorts to a “general argument” because of the poor data. Hume’s actual practice contradicts his theory of induction, but fits in nicely with what Mill (1836) describes as the only ...
Marginal Utility Theory of Household Behavior
... Or, the household consumes enough of each commodity so that the marginal utility per dollar of the last unit consumed is equal for all goods consumed. <> The
household could increase its welfare by reallocating consumption
away from the low ratio ...
... Or, the household consumes enough of each commodity so that the marginal utility per dollar of the last unit consumed is equal for all goods consumed. <
Class Analysis and Cultural Analysis in Bourdieu
... Tocqueville and John Stuart Mill. It is from this point onwards that the concept of interest begins to be reduced to, and exclusively equated with, economic self-interest. It is also at this point that interests became the beginning, so to speak, as well as the end of the analysis. it is mainly inte ...
... Tocqueville and John Stuart Mill. It is from this point onwards that the concept of interest begins to be reduced to, and exclusively equated with, economic self-interest. It is also at this point that interests became the beginning, so to speak, as well as the end of the analysis. it is mainly inte ...
Chapter 5
... "Free" ice cream attract so many consumers that the time spent waiting in line acts as the price of the good ...
... "Free" ice cream attract so many consumers that the time spent waiting in line acts as the price of the good ...
First Pages - Yale Economics
... the same marginal utility as the last pair of shoes, for shoes cost much more per unit than eggs. A satisfactory rule would be: If good A costs twice as much as good B, then buy good A only when its marginal utility is at least twice as great as good B’s marginal utility. This leads to the equimargi ...
... the same marginal utility as the last pair of shoes, for shoes cost much more per unit than eggs. A satisfactory rule would be: If good A costs twice as much as good B, then buy good A only when its marginal utility is at least twice as great as good B’s marginal utility. This leads to the equimargi ...
Economics
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Economics is the social science that seeks to describe the factors which determine the production, distribution and consumption of goods and services.The term economics comes from the Ancient Greek οἰκονομία from οἶκος (oikos, ""house"") and νόμος (nomos, ""custom"" or ""law""), hence ""rules of the house (hold for good management)"". 'Political economy' was the earlier name for the subject, but economists in the late 19th century suggested ""economics"" as a shorter term for ""economic science"" to establish itself as a separate discipline outside of political science and other social sciences.Economics focuses on the behavior and interactions of economic agents and how economies work. Consistent with this focus, primary textbooks often distinguish between microeconomics and macroeconomics. Microeconomics examines the behavior of basic elements in the economy, including individual agents and markets, their interactions, and the outcomes of interactions. Individual agents may include, for example, households, firms, buyers, and sellers. Macroeconomics analyzes the entire economy (meaning aggregated production, consumption, savings, and investment) and issues affecting it, including unemployment of resources (labor, capital, and land), inflation, economic growth, and the public policies that address these issues (monetary, fiscal, and other policies).Other broad distinctions within economics include those between positive economics, describing ""what is,"" and normative economics, advocating ""what ought to be""; between economic theory and applied economics; between rational and behavioral economics; and between mainstream economics (more ""orthodox"" and dealing with the ""rationality-individualism-equilibrium nexus"") and heterodox economics (more ""radical"" and dealing with the ""institutions-history-social structure nexus"").Besides the traditional concern in production, distribution, and consumption in an economy, economic analysis may be applied throughout society, as in business, finance, health care, and government. Economic analyses may also be applied to such diverse subjects as crime, education, the family, law, politics, religion, social institutions, war, science, and the environment. Education, for example, requires time, effort, and expenses, plus the foregone income and experience, yet these losses can be weighted against future benefits education may bring to the agent or the economy. At the turn of the 21st century, the expanding domain of economics in the social sciences has been described as economic imperialism.The ultimate goal of economics is to improve the living conditions of people in their everyday life.