Economic theory is a collection of sections of economic science that studies the economy, abstracting from the specific conditions of economic practices. That is, economic theory studies the behavior of economic actors, their interactions and its immediate results and related systemic effects, omitting specifics forms of economic relations, the economy prevnosimuyu specific economic laws and traditions of different countries and regions.
Economic theory examines, first, the principles of human behavior, which they enter into economic relations as consumers or as producers. Also studied the basic ways of making economic decisions of these people. Based on the knowledge of these basic principles of economic theory constructs a theory of markets for various goods, services and resources, as well as the theory of pricing in these markets. From the theory of the behavior of economic agents and the theory of markets created by the various theories of economic equilibrium, based on which, in turn, economic theory is the theory of economic dynamics and economic growth. Based on these theories, economic theory develops the basic principles of state conduct in the economy and the principles of economic regulation by the state. Several separate looks problematic social welfare and increasing it, as a member of the interests of economic theory.
Among the methods used in economic theory, we can list:
The method of monitoring the economic behavior of people, etc.
The method of historical aniliza.
The statistical method, which in conjunction with the historical method gives the econometric method (the method of time series analysis).
Methods of abstraction.
The methods of logical and mathematical modeling.
A logical method for the synthesis of the results on the basis of basic laws (axioms).
Economic theory consists of the following basic sections:
General economic theory.
Microeconomics.
Macroeconomics.
History of Economic Doctrines.
воскресенье, 2 мая 2010 г.
пятница, 30 апреля 2010 г.
The long-term competitive equilibrium and the supply of goods. The paradox of profits
Economic profit in the long term will attract new firms, and the losses will force companies to leave the industry. As a result, the market price of the product set at the minimum average cost (LAC) typical firm. All branches of the company will receive a zero economic profit, and each of them would choose the volume of production, in which the following condition: P = LAC = LMC.
Graphically, it looks like this:
The point ε - a point long-term competitive equilibrium.
Equity prices and the minimum average cost shows that the company uses the most effective of the known technologies, designate lowest bidder, and produces the largest amount of production. The equality of P and the marginal cost indicates that resources are allocated in accordance with the preferences of consumers.
Long-term supply curve branches can take different forms depending on the dynamics of LAC.
If the company has branches in equilibrium, their LAC does not change depending on the number of incoming and outgoing companies from the industry, the proposal would be completely flexible and the schedule offers - a horizontal line (S1).
In the case of expansion of the industry in the economies of scale (increasing Q while reducing the AU and P) curve S will fall (S2).
If with increasing Q in the industry are growing and the AU and P, then the supply curve in the LR takes the classic "bottom-up" type (S3).
Different versions of the industry supply curves in LR match some portion of the curve LAC.
Graphically, it looks like this:
The point ε - a point long-term competitive equilibrium.
Equity prices and the minimum average cost shows that the company uses the most effective of the known technologies, designate lowest bidder, and produces the largest amount of production. The equality of P and the marginal cost indicates that resources are allocated in accordance with the preferences of consumers.
Long-term supply curve branches can take different forms depending on the dynamics of LAC.
If the company has branches in equilibrium, their LAC does not change depending on the number of incoming and outgoing companies from the industry, the proposal would be completely flexible and the schedule offers - a horizontal line (S1).
In the case of expansion of the industry in the economies of scale (increasing Q while reducing the AU and P) curve S will fall (S2).
If with increasing Q in the industry are growing and the AU and P, then the supply curve in the LR takes the classic "bottom-up" type (S3).
Different versions of the industry supply curves in LR match some portion of the curve LAC.
The American Journal of Economics and Sociology
(AJES; American Journal of Economics and Sociology) - Journal, founded in 1941 to continue the discussion, open an economist and social philosopher Henry George. Chief Editor is Prof. L. Moss.
Each year, as an annex to the magazine publishes a monograph series "Studies of social reform and economic rights." In addition, each year one issue of the journal is thematic (dedicated to a problem or an economist).
Frequency: 5 issues per year.
Each year, as an annex to the magazine publishes a monograph series "Studies of social reform and economic rights." In addition, each year one issue of the journal is thematic (dedicated to a problem or an economist).
Frequency: 5 issues per year.
пятница, 4 июля 2008 г.
Economic policy and its objectives
On the regulatory economy based economic policies, that is economic decision-making. Most often, this term implies, under the country's economic policy, or rather its government. In the economic policy of allocating separate directions, calling them the policies, such as monetary, taxation and fiscal, monetary, industrial policies, etc.
During the implementation of economic policies the country has a different purpose. For developed market economy is, above all, economic growth, full employment, low inflation, positive balance of payments, increasing economic efficiency, increase the welfare of the population, maintaining a high degree of economic freedom for all economic entities, maintaining and improving the natural environment and other purposes. In transition economies are added to the creation of private sector and market infrastructure, the liberalization of economic life, etc.
But the problem is that many of the goals of economic policies contradict each other. Thus, the active fight against inflation usually means a drop in economic growth and strengthening of unemployment. Therefore, depending on the situation priority objectives into economic policies may vary. Usually it depends on what becomes of them (could become) in "sore".
During the implementation of economic policies the country has a different purpose. For developed market economy is, above all, economic growth, full employment, low inflation, positive balance of payments, increasing economic efficiency, increase the welfare of the population, maintaining a high degree of economic freedom for all economic entities, maintaining and improving the natural environment and other purposes. In transition economies are added to the creation of private sector and market infrastructure, the liberalization of economic life, etc.
But the problem is that many of the goals of economic policies contradict each other. Thus, the active fight against inflation usually means a drop in economic growth and strengthening of unemployment. Therefore, depending on the situation priority objectives into economic policies may vary. Usually it depends on what becomes of them (could become) in "sore".
Positive and normative economic theory
Most of economic theory explains how the economy operates, as a society decide key economic task. She describes, analyzes, but does not give recommendations. This approach is called a positive and analytical part of economic theory - positive economic theory. Thus, the positive economics explains why Russia in the volume of production of goods and services for the 1990-1998's. fell by more than 45%.
In contrast to the positive normative economic theory provides advice, recipes action. Naturally, this is part of economic theory, which causes the greatest controversy among economists. Thus, Russian economists propose very different ways of enhancing economic growth in Russia and addressing key economic challenges.
In contrast to the positive normative economic theory provides advice, recipes action. Naturally, this is part of economic theory, which causes the greatest controversy among economists. Thus, Russian economists propose very different ways of enhancing economic growth in Russia and addressing key economic challenges.
четверг, 3 июля 2008 г.
The notion of economic theory and challenges
Economic theory created and developed by economists of various schools and directions, so its definition is different. The most common can be so: economic theory - it is science on the basics of economic life of society. In turn, economic life - is the work of people associated with the material conditions of their lives.
Economic life (economic activity, economic activity) is based on that, to get the desired benefits society uses economic resources, which in most cases are limited and therefore they should be used as effectively as possible. As he wrote a Nobel laureate in economics Paul Samuelson, in the economy, there are three key tasks:
1. What are the benefits to produce and in what quantities?
2. How to make good, that is what resources and using what technology will produce them?
3. For whom to produce good?
Economic life (economic activity, economic activity) is based on that, to get the desired benefits society uses economic resources, which in most cases are limited and therefore they should be used as effectively as possible. As he wrote a Nobel laureate in economics Paul Samuelson, in the economy, there are three key tasks:
1. What are the benefits to produce and in what quantities?
2. How to make good, that is what resources and using what technology will produce them?
3. For whom to produce good?
Introduction
There are elaborate system of Sciences, who are studying various aspects of business (economic) society. All are based on science, which is now in Russia often referred to as economic theory (often economic science, or simply economies), and in most countries of the world mainly on Greco-Roman style - economy.
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