economics

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Related to Economic theories: game theory, Keynesian economics

Economics

Economics

The study of how people produce, trade, and use goods and services. Economists look at how different actors, such as individuals, companies, and governments, interact with one another to maximize the fulfillment of their needs through the use of scarce resources. Economics also includes the study of supply, demand, and the relationship between the two. There are a number of schools of thought within economics. Some major schools are classical economics, which considers the sources of production as well as the role of the Invisible Hand of the market, and Marxism, which considers the exploitation of labor by holders of capital. Other, modern schools of thought include Keynesianism, which emphasizes the role of demand as opposed to supply, and monetarism, which promotes the use of the free market and the considers the role of money supply in economic growth. See also: Macroeconomics, Microeconomics.

economics

the study of the way in which countries endowed with only a limited availability of economic resources (natural resources, labour and capital) can best use these resources so as to gain the maximum fulfilment of society's unlimited demands for goods and services. Economics has a macroeconomic and a microeconomic dimension. Macroeconomics is concerned with the overall efficiency of resource use in the economy, in particular the achievement of full employment, and with the growth of resources over time (see ECONOMIC POLICY). Micro-economics is concerned with the efficient supply of particular goods and services (see MARKET SYSTEM).

economics

the study of the problem of using available FACTORS OF PRODUCTION as efficiently as possible so as to attain the maximum fulfilment of society's unlimited demands for GOODS and SERVICES. The ultimate purpose of economic endeavour is to satisfy human wants for goods and services. The problem is that whereas wants are virtually without limit, the resources (NATURAL RESOURCES, LABOUR and CAPITAL) available at any one time to produce goods and services are limited in supply; i.e. resources are scarce (see SCARCITY) relative to the demands they are called upon to satisfy. The fact of scarcity means that we must always be making CHOICES. If, to take a simple example, more resources are devoted to producing motor cars, fewer resources are then available for providing hospitals and other goods. Various ECONOMIC SYSTEMS may be employed to allocate resources and deal with such choices.

Economics has a microeconomic and a macroeconomic dimension. Microeconomics is concerned with the efficient supply of particular products. Macroeconomics is concerned with the overall efficiency of resource use in the economy, in particular the achievement of FULL EMPLOYMENT of current resources and the growth of output over time. See OPPORTUNITY COSTS, PRODUCTION POSSIBILITY BOUNDARY, EFFICIENCY, PRICE SYSTEM, ECONOMIC GROWTH.

References in periodicals archive ?
Milton Friedman charges that what matters is the predictive and not the explanatory success of economic theories with respect to the tasks for which they are designed.
Did judges intend to incorporate economic theories into the law?
The book will also bring awareness of the stark differences that lie between the various economic theories. The new classical economic theory has too many implications and has received too wide an appeal over the past several decades to be contained in one volume.
Her earliest works, such as Devotional Exercises for the Use of Young Persons (1823), were of a religious character, but she became famous for a series of stories illustrating the economic theories of such contemporary thinkers as Malthus, Ricardo, and Mill.
Kates presents students and general readers with a textbook designed to provide a better understanding of economics utilizing economic theories popular in the past, but out of favor today.
I therefore summarize this section by putting forward Mueller's First Lemma: "Of all economic theories so far, the most logically complete and empirically verifiable is the Scholastic economic theory." Put another way, all other economic theories fall short of Scholastic economic theory as both a logical and an empirical matter.
Specific topics include the role of game theory in law, agency models in law and economics, economic analyses of legal disputes and their resolution, game theory in calculating litigation costs, an economic theory of the duty to bargain, optimal choices of legal rules, economic theories of liability, interactive theories of law enforcement in tax compliance and other cases, the selection of disputes for litigation, rational choice theory of Supreme Court statutory decisions, and tests for the stability and liability of judicial decisions.
Economic theories are not just some pie-in-the-sky, ivory tower academic exercises.
Pareto's textual analysis of the history of economic theories revolves around the relationship between the intrinsic and the extrinsic: 'Both methods, if used exclusively, are equally incomplete.' (Pareto 1916 [1935], pp.
Even college students well versed in economic theories that treat only selfish strategies as rational often cooperate with anonymous partners to win money in laboratory games, McCabe and Smith say.
The book explains how particular economic theories emerged, how schools evolved out of a common methodological perception and similar techniques of analysis, and how they became established in Germany.
There is no laboratory in which economic theories can be tested.