Written by Yang Yang ·
Filed under Basic Economic Concepts, Economics, History of Economics
Austrian Economics dates back all the way to the fifteenth century. It is based on the assumption that the actions of social groupings and individual humans follow natural laws much in the same way as other aspects of nature. It has been the aim of Austrian economics to produce theories to explain these actions; although the claim that this should involve different tools than used in hard science. Followers of this theory of economics are strong advocates for complete freedom in the marketplace; they believe that industry should be allowed to make voluntary contracts but they should not be coerced into anything. The reason why it is called the Austrian school is that many of the early proponents of the theory were from Austria; most supporters of the school these days do not come from anywhere near Austria.
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Written by Yang Yang ·
Filed under Economics
Health Economics has been a hot topic recently. In countries like the United States the subject can lead to much contention. Many individuals discuss the subject without ever even realizing that there is a whole branch of economic theory devoted to this topic. Health care is one of the most important issues that concerns humans and economists have a lot to say about it.
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Written by Yang Yang ·
Filed under Basic Economic Concepts, Economics
Pareto efficiency is something you may sometimes hear mentioned in relation to economic theory. It is named after an Italian economist named Vilfredo Pareto. The idea of a Pareto efficiency is not related to equity because something can be meet the requirements of Pareto efficiency but be very inequitable indeed. The idea of Pareto efficiency is of interest to economists and it is particular importance for game theory.
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Written by Yang Yang ·
Filed under Basic Economic Concepts, Economics, Macroeconomics
The business cycle is something you will frequently hear economists mention. It is often discussed in relation to a countries economic performance or how markets are behaving on a global scale. It seems to be quite an important concept so what does it actually refer to?
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Written by Yang Yang ·
Filed under Economics, Environmental Economics
There are many different groups around the world who would love to see a steady state economy. This ambition is of particular importance to environmentalists who see it as a way to help protect the world from global warming. There are claims that such an economy would be ethically on a sounder footing and would create more happiness for citizens.
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Written by Yang Yang ·
Filed under Basic Economic Concepts, Economics
Diminishing returns is probably one of the most important concepts in Economic theory. It is so famous that it has now entered common everyday speech. Some people do get confused with diminishing returns but it is actually quite a simple idea.
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Written by Yang Yang ·
Filed under Economic Mathematics, Economics
Anyone who saw the award winning film “A Beautiful Mind” will probably have heard of “game theory”. This film was based on the true story of John Nash and his battle with schizophrenia. This inspirational figure managed to overcome his mental health problems to go on to win a noble prize. The prize was awarded for his contribution to economics in the form of John Nash game theory; in particular his idea of the Nash’s equilibrium.
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Written by Yang Yang ·
Filed under Basic Business Concepts, Economics, Small Business
The concept of staggered contracting revolves around one primary topic: price. At a glance, staggered contracting seems like something only found in a parallel, Utopian dimension: prices don’t wildly fluctuate. In fact, under the definition of staggered contracting, prices don’t move at all in either direction.
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