3 slides - International Trade Theory and Policy
... – Laid the conceptual foundation of modern trade theory – Opportunity Cost conception of CA: value of X in terms of foregone units of Y rather than in labour units. ...
... – Laid the conceptual foundation of modern trade theory – Opportunity Cost conception of CA: value of X in terms of foregone units of Y rather than in labour units. ...
Economics
... How Do Economists Think: Utility and Rationality • Economists assume that people act rationally Economists assume that people act to maximize their own happiness and minimize their costs. • This happiness that economists assume people maximize is called utility. • This does not mean people are alwa ...
... How Do Economists Think: Utility and Rationality • Economists assume that people act rationally Economists assume that people act to maximize their own happiness and minimize their costs. • This happiness that economists assume people maximize is called utility. • This does not mean people are alwa ...
Economics
... How Do Economists Think: Utility and Rationality • Economists assume that people act rationally Economists assume that people act to maximize their own happiness and minimize their costs. • This happiness that economists assume people maximize is called utility. • This does not mean people are alwa ...
... How Do Economists Think: Utility and Rationality • Economists assume that people act rationally Economists assume that people act to maximize their own happiness and minimize their costs. • This happiness that economists assume people maximize is called utility. • This does not mean people are alwa ...
Economics?
... B. When marginal cost exceeds marginal benefit, cutting back on the activity will bring the firm closer to the optimum. C. Equilibrium conditions show how one agent’s economic problem is affected by other agents’ optimization problems and constraints. A. In a Nash equilibrium, each agent takes the a ...
... B. When marginal cost exceeds marginal benefit, cutting back on the activity will bring the firm closer to the optimum. C. Equilibrium conditions show how one agent’s economic problem is affected by other agents’ optimization problems and constraints. A. In a Nash equilibrium, each agent takes the a ...
Development Theory I: Modernisation and Dependency
... • For ideas of development economics or development theory to make sense it necessary to recognise difference between developing and developed societies • In many respects both Marxists and liberals did not recognize differences in C19th and early C20th ...
... • For ideas of development economics or development theory to make sense it necessary to recognise difference between developing and developed societies • In many respects both Marxists and liberals did not recognize differences in C19th and early C20th ...
Microeconomics I Syllabus Instructor
... Course Overview: The course will cover standard models in microeconomics, such as individual decision-making with and without uncertainty, models of consumer behavior and producer behavior under perfect competition, the Arrow-Debreu general equilibrium model, and some basic issues in welfare economi ...
... Course Overview: The course will cover standard models in microeconomics, such as individual decision-making with and without uncertainty, models of consumer behavior and producer behavior under perfect competition, the Arrow-Debreu general equilibrium model, and some basic issues in welfare economi ...
Chapter 1: Self-Review Answers
... d. clean air in a big city—scarce e. dirty air in a big city—not scarce f. a public library—scarce ...
... d. clean air in a big city—scarce e. dirty air in a big city—not scarce f. a public library—scarce ...
Human prosperity and social cooperation develop spontaneously in
... rights and encourage voluntary trade. Economic Reasoning Propositions: ERP-1: People choose, and individual choices are the source of social outcomes. Scarcity necessitates choices: not all of our desires can be satisfied. People make these choices based on their perceptions of the expected costs an ...
... rights and encourage voluntary trade. Economic Reasoning Propositions: ERP-1: People choose, and individual choices are the source of social outcomes. Scarcity necessitates choices: not all of our desires can be satisfied. People make these choices based on their perceptions of the expected costs an ...
Lecture Two - Sociological Analysis
... Social conditions are the expression of the ongoing power ...
... Social conditions are the expression of the ongoing power ...
Perspectives and Achievements with Rational
... “Pharmaceuticals are highly specialized products, and individuals respond idiosyncratically to different drugs. Therefore individual consumers may not agree on the ranking of a given pharmaceutical in relation to others, although there is consensus over the general efficacy or therapeutic benefit of ...
... “Pharmaceuticals are highly specialized products, and individuals respond idiosyncratically to different drugs. Therefore individual consumers may not agree on the ranking of a given pharmaceutical in relation to others, although there is consensus over the general efficacy or therapeutic benefit of ...
Rational choice theory
Rational choice theory, also known as choice theory or rational action theory, is a framework for understanding and often formally modeling social and economic behavior. The basic premise of rational choice theory is that aggregate social behavior results from the behavior of individual actors, each of whom is making their individual decisions. The theory therefore focuses on the determinants of the individual choices (methodological individualism).Rational choice theory then assumes that an individual has preferences among the available choice alternatives that allow them to state which option they prefer. These preferences are assumed to be complete (the person can always say which of two alternatives they consider preferable or that neither is preferred to the other) and transitive (if option A is preferred over option B and option B is preferred over option C, then A is preferred over C). The rational agent is assumed to take account of available information, probabilities of events, and potential costs and benefits in determining preferences, and to act consistently in choosing the self-determined best choice of action.Rationality is widely used as an assumption of the behavior of individuals in microeconomic models and analyses and appears in almost all economics textbook treatments of human decision-making. It is also central to some of modern political science, sociology, and philosophy. A particular version of rationality is instrumental rationality, which involves seeking the most cost-effective means to achieve a specific goal without reflecting on the worthiness of that goal. Gary Becker was an early proponent of applying rational actor models more widely. Becker won the 1992 Nobel Memorial Prize in Economic Sciences for his studies of discrimination, crime, and human capital.