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Microeconomist
Microeconomics is a branch of mainstream economics that studies the behavior of individuals and firms in making decisions regarding the allocation of scarce resources and the interactions among these individuals and firms. Microeconomics focuses on the study of individual markets, sectors, or industries as opposed to the national economy as whole, which is studied in macroeconomics. One goal of microeconomics is to analyze the market mechanisms that establish relative prices among goods and services and allocate limited resources among alternative uses. Microeconomics shows conditions under which free markets lead to desirable allocations. It also analyzes market failure, where markets fail to produce efficient results. While microeconomics focuses on firms and individuals, macroeconomics focuses on the sum total of economic activity, dealing with the issues of growth, inflation, and unemployment and with national policies relating to these issues. Microeconomics also deals ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Market Failure
In neoclassical economics, market failure is a situation in which the allocation of goods and services by a free market is not Pareto efficient, often leading to a net loss of economic value. Market failures can be viewed as scenarios where individuals' pursuit of pure self-interest leads to results that are not efficient β that can be improved upon from the societal point of view.Paul Krugman and Robin Wells (2006). ''Economics'', New York, Worth Publishers. The first known use of the term by economists was in 1958, Francis M. Bator (1958). "The Anatomy of Market Failure," ''Quarterly Journal of Economics'', 72(3) pp351β379(press +). but the concept has been traced back to the Victorian philosopher Henry Sidgwick.Steven G. Medema (2007). "The Hesitant Hand: Mill, Sidgwick, and the Evolution of the Theory of Market Failure," ''History of Political Economy'', 39(3), p. 331358. 200Online Working Paper. Market failures are often associated with public goods, time-inconsistent ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Delhi Main Bazaar
Delhi, officially the National Capital Territory (NCT) of Delhi, is a city and a union territory of India containing New Delhi, the capital of India. Straddling the Yamuna river, primarily its western or right bank, Delhi shares borders with the state of Uttar Pradesh in the east and with the state of Haryana in the remaining directions. The NCT covers an area of . According to the 2011 census, Delhi's city proper population was over 11 million, while the NCT's population was about 16.8 million. Delhi's urban agglomeration, which includes the satellite cities of Ghaziabad, Faridabad, Gurgaon and Noida in an area known as the National Capital Region (NCR), has an estimated population of over 28 million, making it the largest metropolitan area in India and the second-largest in the world (after Tokyo). The topography of the medieval fort Purana Qila on the banks of the river Yamuna matches the literary description of the citadel Indraprastha in t ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Rationality
Rationality is the quality of being guided by or based on reasons. In this regard, a person acts rationally if they have a good reason for what they do or a belief is rational if it is based on strong evidence. This quality can apply to an ability, as in rational animal, to a psychological process, like reasoning, to mental states, such as beliefs and intentions, or to persons who possess these other forms of rationality. A thing that lacks rationality is either ''arational'', if it is outside the domain of rational evaluation, or ''irrational'', if it belongs to this domain but does not fulfill its standards. There are many discussions about the essential features shared by all forms of rationality. According to reason-responsiveness accounts, to be rational is to be responsive to reasons. For example, dark clouds are a reason for taking an umbrella, which is why it is rational for an agent to do so in response. An important rival to this approach are coherence-based accoun ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Action Axiom
An action axiom is an axiom that embodies a criterion for describing action. Action axioms are of the form "If a condition holds, then the following will be done". On the action axiom Decision theory and, hence, decision analysis are based on the ''maximum expected utility'' (MEU) action axiom. In general, the principle for action embodied by an action axiom (such as MEU) is highly defensible and its scope very broad. The action-axiom is the basis of praxeology in the Austrian School, and it is the proposition that all specimens of the species ''Homo sapiens'', the ''Homo agens'', purposely utilize means over a period of time in order to achieve desired ends. In ''Human Action'', Ludwig von Mises defined βactionβ in the sense of the action axiom by elucidating: See also *Norm (artificial intelligence) Norms can be considered from different perspectives in artificial intelligence to create computers and computer software that are capable of intelligent behaviour. In art ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Consumer Choice
The theory of consumer choice is the branch of microeconomics that relates preferences to consumption expenditures and to consumer demand curves. It analyzes how consumers maximize the desirability of their consumption as measured by their preferences subject to limitations on their expenditures, by maximizing utility subject to a consumer budget constraint. Factors influencing consumers' evaluation of the utility of goods: income level, cultural factors, product information and physio-psychological factors. Consumption is separated from production, logically, because two different economic agents are involved. In the first case consumption is by the primary individual, individual tastes or preferences determine the amount of pleasure people derive from the goods and services they consume.; in the second case, a producer might make something that he would not consume himself. Therefore, different motivations and abilities are involved. The models that make up consumer theory ar ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Utility
As a topic of economics, utility is used to model worth or value. Its usage has evolved significantly over time. The term was introduced initially as a measure of pleasure or happiness as part of the theory of utilitarianism by moral philosophers such as Jeremy Bentham and John Stuart Mill. The term has been adapted and reapplied within neoclassical economics, which dominates modern economic theory, as a utility function that represents a single consumer's preference ordering over a choice set but is not comparable across consumers. This concept of utility is personal and based on choice rather than on pleasure received, and so is specified more rigorously than the original concept but makes it less useful (and controversial) for ethical decisions. Utility function Consider a set of alternatives among which a person can make a preference ordering. The utility obtained from these alternatives is an unknown function of the utilities obtained from each alternative, not the sum of ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Local Nonsatiation
In microeconomics, the property of local nonsatiation of consumer preferences states that for any bundle of goods there is always another bundle of goods arbitrarily close that is strictly preferred to it.''Microeconomic Theory'', by A. Mas-Colell, et al. Formally, if X is the consumption set, then for any x \in X and every \varepsilon>0, there exists a y \in X such that \, y-x \, \leq \varepsilon and y is strictly preferred to x. Several things to note are: # Local nonsatiation is implied by monotonicity of preferences. However, as the converse is not true, local nonsatiation is a weaker condition. # There is no requirement that the preferred bundle ''y'' contain more of any good β hence, some goods can be "bads" and preferences can be non-monotone. # It rules out the extreme case where all goods are " bads", since the point ''x'' = 0 would then be a bliss point. # Local nonsatiation can only occur either if the consumption set is unbounded or open (in other words, it i ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Consumption Set
The theory of consumer choice is the branch of microeconomics that relates Preference (economics), preferences to consumption expenditures and to supply and demand, consumer demand curves. It analyzes how consumers maximize the desirability of their consumption as measured by their preferences subject to limitations on their expenditures, by maximizing utility subject to a consumer budget constraint. Factors influencing consumers' evaluation of the utility of goods: income level, cultural factors, product information and physio-psychological factors. Consumption is separated from production, logically, because two different economic agents are involved. In the first case consumption is by the primary individual, individual tastes or preferences determine the amount of pleasure people derive from the goods and services they consume.; in the second case, a producer might make something that he would not consume himself. Therefore, different motivations and abilities are involved. T ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Budget Set
In economics, a budget set, or the opportunity set facing a consumer, is the set of all possible consumption bundles that the consumer can afford taking as given the prices of commodities available to the consumer and the consumer's income. Let the number of commodities available to the consumer in an economy be finite and equal to k. Thus, for commodity amounts \mathbf = \left x_, x_, \ldots, x_ \right/math>, also known as consumption plans which should not exceed the income, with associated prices \mathbf = \left p_, p_, \ldots, p_ \right/math> and consumer income m, the budget set is defined as :B_ = \left\, where the consumption set is taken to be X = \mathbb^_. It is typically assumed that \mathbf >> 0 and m \in \mathbb_, in which case B is also known as the Walrasian, or competitive, budget set. The budget set is bounded above by a k-dimensional budget hyperplane characterized by the equation \mathbf \mathbf = m, which in the two-good case corresponds to the budget line. Graph ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Differentiable Function
In mathematics, a differentiable function of one real variable is a function whose derivative exists at each point in its domain. In other words, the graph of a differentiable function has a non-vertical tangent line at each interior point in its domain. A differentiable function is smooth (the function is locally well approximated as a linear function at each interior point) and does not contain any break, angle, or cusp. If is an interior point in the domain of a function , then is said to be ''differentiable at'' if the derivative f'(x_0) exists. In other words, the graph of has a non-vertical tangent line at the point . is said to be differentiable on if it is differentiable at every point of . is said to be ''continuously differentiable'' if its derivative is also a continuous function over the domain of the function f. Generally speaking, is said to be of class if its first k derivatives f^(x), f^(x), \ldots, f^(x) exist and are continuous over the domain of the func ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Comparative Statics
In economics, comparative statics is the comparison of two different economic outcomes, before and after a change in some underlying exogenous variable, exogenous parameter. As a type of ''static analysis'' it compares two different economic equilibrium, equilibrium states, after the process of adjustment (if any). It does not study the motion towards equilibrium, nor the process of the change itself. Comparative statics is commonly used to study changes in supply and demand when analyzing a single Market (economics), market, and to study changes in monetary policy, monetary or fiscal policy when analyzing the whole macroeconomics, economy. Comparative statics is a tool of analysis in microeconomics (including general equilibrium analysis) and macroeconomics. Comparative statics was formalized by Sir John Richard Hicks, John R. Hicks (1939) and Paul A. Samuelson (1947) (Kehoe, 1987, p. 517) but was presented graphically from at least the 1870s. For models of stable equili ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Utility
As a topic of economics, utility is used to model worth or value. Its usage has evolved significantly over time. The term was introduced initially as a measure of pleasure or happiness as part of the theory of utilitarianism by moral philosophers such as Jeremy Bentham and John Stuart Mill. The term has been adapted and reapplied within neoclassical economics, which dominates modern economic theory, as a utility function that represents a single consumer's preference ordering over a choice set but is not comparable across consumers. This concept of utility is personal and based on choice rather than on pleasure received, and so is specified more rigorously than the original concept but makes it less useful (and controversial) for ethical decisions. Utility function Consider a set of alternatives among which a person can make a preference ordering. The utility obtained from these alternatives is an unknown function of the utilities obtained from each alternative, not the sum of ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
