Abstract The paper explains economictheory on the basis of marginal theory and marginal analysis and shows how economictheory is often based upon the philosophy of utilitarianism. The paper offers plenty of examples of the practical application of economictheory and marginal analysis. The paper concludes that economictheory can be applied in any sector and especially in areas where one wishes to analyze one's profits against one's investment.
From the Paper "A popular concept that is used both in macro economic theory, as well as in micro economic theory is that of marginal change. Marginal analysis is therefore one of the most important principles of economic theory, and one must study a few concepts of economic theory before one can proceed. Marginal change can be explained as a small addition or subtraction, in proportional comparison, to the total quantity of some variable. On the other hand, marginal analysis can be described as the analysis or the study of the relationships that are brought about by marginal changes, in related economic variables. As far as micro economic theory is concerned, marginal concepts are utilized primarily in order to explicate several different forms of optimizing behavior. For example, while customers are stated to be maximizing their utility or their satisfaction, companies are stated to be maximizing their profits. (Johnson, 2005) "
Abstract Schumpeter's economictheories as they are outlined in "Capitalism, Democracy and Socialism" differ significantly from the neo-classical view of economics. The neo-classical view is outlined-with reference to Adam Smith as a representative neo-classical economist--and contrasted with Schumpeter's theories. Schumpeter's absorption of Marxism, his views on markets and monopolies, and his ruminations on the future of capitalism are highlighted and contrasted with the neo-classical paradigm.
Abstract This paper examines Adam Smith's classical economictheory and John Maynard Keynes' macroeconomics theory. The paper explains how they differ and how they both influenced modern economictheory.
From the Paper "Keynesian economics emerged primarily during the Depression era when it was found that classical theories of macroeconomics were no longer serving the policymakers. Economists who had previously stayed loyal to the classical model suddenly found themselves at a loss as their theories failed to explain the persistent depression of 1930s. Classical theories of macroeconomics were mainly concerned with the behavior of the markets. They were grounded in the assumption that people always behaved rationally and thus if markets were left to function on their own without any intervention from governments, it would start behaving perfectly in due course of time. The only intervention made by the government should be in the area of removing interventions. It was an interesting concept as classical economists saw limited role of government in running of markets and felt that government should only try to remove imperfections from markets in order to let them function according to natural and rational laws. Classical model came into being with Adam Smith's Magnus opus An Enquiry into the Nature and Causes of Wealth of Nations (1776)."
Abstract In this article, the writer looks at and compares the issue of economictheory and reality. In examination of this matter, the writer discusses the views and theories of Adam Smith, Karl Marx and Keynes.
From the Paper "Adam Smith has gotten a bad reputation in recent years. He has been held up as the darling of the New Right in its attempt to deify the 'free market' and roll back the social reforms of the 20th Century, but for his time, Smith was remarkably on the money. He couldn't predict the dramatic technological and social upheaval of the subsequent industrial revolutions, but he was fully aware of the conflict between the interests of the business class and the public good, and gave plenty of warning of such."
Abstract Discusses a 2002 article from the Wall Street Journal, "Does Spending Stimulate? Do Deficits," on economictheory. The article centers on the economic recovery at the onset of 2002.
From the Paper "Robert L Bartley discussed the economic recovery which began to emerge at the outset of arguing that the recovery did not appear dependent on any help from fiscal policy ..."
Abstract This paper reviews dominant trends in healthcare economics during the last decade. Specifically, the researcher reviews economictheory and law. The paper examines how economictheory influences trends in healthcare organizations and relationships among healthcare providers. A comprehensive analysis of the literature is provided. The literature review suggests multiple theories including supply side theories. These theories help influence decision-making in healthcare. The researcher concludes that physicians now hold less power in the healthcare industry.
Outline:
Abstract
Introduction
Literature Review
Managerial Applications
Summary/Conclusions
References
From the Paper "Economic laws and market trends often govern healthcare policy. It is vital to understand these trends and policies as well as economic theory when evaluating healthcare relationship. Multiple trends influence modern healthcare policy, including the changing face of healthcare economies and market trends in the healthcare environment. The doctor and hospital relationship has shifted many times resulting from these trends and changes. In times of old doctors held much of the power assumed in the healthcare environment, deciding key issues including setting pricing of fees and services and the nature of services provided by hospitals. In modern times, hospitals and managed care organizations are increasingly responsible for setting prices and the standards of care offered patients in the hospital setting. This shift changes the way doctors and hospitals work with each other. Today large managed care organizations afford consumers more decisions and more cost-effective services."
A examination of Sowell's work on economictheory using two of his books: "The Quest for Cosmic Justice" and "The Vision of the Anointed: Self Congratulating as a Basis for Social Policy".
Abstract This paper examines Thomas Sowell's work on economics and social justice by analyzing two of his books::"The Quest for Cosmic Justice" and "The Vision of the Anointed: Self Congratulating as a Basis for Social Policy". It looks at how Sowell's analysis explores the following questions : Is the paradigm of social justice exaggerated? Is society being manipulated to accept the views of an elite group of intellectuals, who have used the platform of justice to remove social privileges? Has the market system and price mechanism failed us? The writer suggests that Sowell's work should be mandated to be analyzed in conjunction with economics. The writer explains that economictheory is being used to subjugate and dictate policies that over-ride the primary components of the market economy. The writer believes that "The Quest for Cosmic Justice" and "The Vision of the Anointed" allow the economic student to realize that at the very fiber of every decision there are costs.
Outline:
Introduction
Quest for Cosmic Justice
The Vision of the Anointed
Sowell's Work and EconomicTheory Has Sowell Gone too Far? A Critique of Sowell's Work
Conclusion
From the Paper "Economics has allowed many individuals (myself included) to be more analytical in their thinking and at times more technical when solving problems. However, the field has been known to produce ground-breaking research in issues that surpass the quantitative esoteric nature that is presented to many individuals. Thomas Sowell's works fall into the former rather than latter category. Sowell's truth-bearing books are sometimes hard to read, because of how unbiased and 'raw' his work is. I sometimes wonder if Sowell was not African American, what would be the reaction to his work, would it still be revolutionary or just racist babbling."
Abstract This paper discusses the history of economic thought by looking at theories such as the mercantile school, the theory of comparative costs and also at economists such as the Adam Smith and Thomas Malthus. The author offers descriptions and explanations of each school of thought and gives examples of known people who supported or opposed the theories.
Outline:
Mercantilist School
The Physiocrats
Adam Smith
David Ricardo
Thomas Malthus
References
From the Paper "The ideas promoted by the mercantilist school can be linked to the history of the era. The geographical discoveries and the development of the European countries meant more trade opportunities. They represented more destinations to which products could be sold and as such, more sources of further revenues. But they also represented that new products could be brought in from these regions, imports which would lead to decreased sales of the local products - ergo, the mercantilist policies in regard to the limitation of imports and the subsidizing of exports."
Abstract This paper presents a brief discussion of the life history of Karl Marx. The paper describes one of Marx's contributions to economics and explains the significance of this contribution. The paper examines the loopholes in Marx's economictheory. The paper contends that his economictheories deserve to be studied so that the undesirable effects of capitalism, such as the growing socioeconomic inequality around the world, can be effectively tackled.
From the Paper "Karl Marx was born into a middle-class Jewish family in Trier, Germany on May 5, 1818. He studied Law at the University of Bonn and at the University of Berlin. He entered the field of journalism in 1842, becoming the editor of an influential liberal newspaper, "Rheinische Zeitung" in Cologne shortly afterwards. His bold criticism of the social and Economic conditions in Prussia brought him into further trouble with the government and the paper was banned. He left Germany and started to live in Paris where he adopted his Communist beliefs."
Abstract The paper relates that in 1990, Michael E. Porter introduced his treatise on global economic inter-connectivity in "The Competitive Advantage of Nations." Porter's work focuses not merely on the laws of supply and demand, as has traditionally been the core premise of most economictheories, but instead attributes economic successes and failures to strategic positioning. This paper critiques Porter's theories.
From the Paper "Countries and organizations that take advantage of opportunities and maintain their core strengths tend to succeed, while countries and organizations that succumb to threats and their internal weaknesses tend to fail. This theory of strategies positioning was developed by Porter after quantitative and qualitative analysis in which he assessed the outcomes of decisions made by four industries and ten countries."
Abstract This paper discusses how neoclassical economics provides an evaluation of current economic situations as they relate to elements within society. Neoclassical economics is a form of macroeconomics that allows for an evaluation of these elements that may include pricing employment spending consumption and the value of money. The paper further discusses how neoclassical economists as more capable of realizing the shift in the economy over time they can then produce resolutions to issues that may be affecting the problems that are related to the current economic condition. Neoclassical economics also focuses on the individual and his or her relationship to the economy.
Abstract This paper examines components of restrictive rent control legislation and its economic and social consequences in America. This examination focuses specifically on rent control applications in New York City and the urban cities of Santa Monica and Berkeley, California. Additionally, the paper discusses how government regulations violate two of the eight basic principles of economic thinking. These basic principles are: (1) incentives matter ? choice is influenced in a predictable way by changes in economic incentives and (2) economic actions often generate secondary effects in addition to their immediate effects.
From the Paper "Rent control is one of the most controversial social welfare programs in existence. In 1943 and after World War II, the federal government enacted rent controls as a "temporary" attempt to combat housing shortages in intensive populated or urban areas and to protect residents from high housing prices. Opponents argue that rent control result in decreased levels of construction, decreased levels of maintenance on existing properties, and abnormal housing vacancies, and is therefore economically ineffective. Some opponents even feel that rent control causes homelessness. Advocates of rent control and rent stabilization see it as a way to ensure the availability of affordable rental housing for low and middle-income urban dwellers. Rent control advocates contend ? there was already a housing shortage and that rent-control laws were enacted to keep landlords from taking advantage of the situation by "gouging" tenants? (Sowell, 1999). Many rent control proponents feel that the abolishment of rent controls would result in increased homelessness. "
Abstract The following paper examines the affect of economic agent behavior on scarcity. It defines market fundamentalism and economic agent behavior. The writer also examines what the best outcome is for society and for the consumer. This paper looks at whether the consumer's best interest is satisfied by the market. All the above are discussed with reference to the economictheory of self-interest, opportunistic behavior, and the ?economic person?.
From the Paper "The development of agent theory in economics is based on assumptions and its impetus that the interests of owners and managers of publicly held corporations may diverge (Wright 295). Sometimes the wishes of stockholders are distorted in favor of the managers of the businesses. The reasoning behind this is that the national economy might suffer if the managers of the firm appeared to be economically predisposed, selfish, and opportunistic. "Our contention is that agency theory's assumptions of self-serving individuals who are primarily economically oriented and predisposed to opportunism, when applied to a firm, it may be incompatible with that firm's achievement of competitive advantage" (Wright 295). Thus, they do not supply the best interests of the stockholders."
Abstract The paper discusses the history of hegemony and the economictheory that holds that the world is the most stable and prosperous when a hegemon exists as an organizer of the world economic and political systems. The paper looks at the United States as it historically filled the role of hegemon.
From the Paper "The theory of hegemonic stability offers an overview of world economic history as influenced by major powers: the Dutch (1620 ? 1672), the English (1815 ? 1873) and the Americans (1945 ? 1971). Naturally following is the theory of hegemony fatigue as put forth by Paul Kennedy and others: hegemony is a self-limiting system since the other countries (free riders) which use and benefit from the system put such a burden on the hegemon (who must bear the cost of the system) that sooner or later the system collapses. When the hegemon becomes unable to bear the burden of cost of the other countries, it either turns inward and puts its domestic issues first, or collapses under the strain. Frequently cited examples of hegemony fatigue and decline are that of England at the end of the 19th century, the collapse of the Bretton Woods system (the mechanism of US hegemony) and the collapse of the Iron Curtain which was the mechanism of the hegemony of the Soviet Union over Central and Eastern Europe."
Abstract John Hobson's economictheories are applied to today's world in this paper. The paper examines his theories of the accumulation and distribution of wealth (capital) and investment risks in developing countries.
From the Paper "John Hobson's accumulation theory posited that massive wealth derived from industrialization could not be absorbed in late nineteenth century and early twentieth century developed economies because of the relatively low proportion of national income that was distributed to the great preponderance of the populations of those countries. The resulting accumulation of wealth capital in a relatively few hands led to a phenomenon of over-saving among the holders of the wealth because attractive investment opportunities no longer existed in the countries where the wealth was generated ..."
