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Marginalism
Marginalism is a theory of economics that attempts to explain the discrepancy in the value of goods and services by reference to their secondary, or marginal, utility. It states that the reason why the price of diamonds is higher than that of water, for example, owes to the greater additional satisfaction of the diamonds over the water. Thus, while the water has greater total utility, the diamond has greater marginal utility. Although the central concept of marginalism is that of marginal utility, marginalists, following the lead of Alfred Marshall, drew upon the idea of marginal physical productivity in explanation of cost. The neoclassical tradition that emerged from British marginalism abandoned the concept of utility and gave marginal rates of substitution a more fundamental role in analysis. Marginalism is an integral part of mainstream economic theory. Important marginal concepts Marginality For issues of marginality, constraints are conceptualized as a ''border'' ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Marginal Utility
In economics, utility is the satisfaction or benefit derived by consuming a product. The marginal utility of a good or service describes how much pleasure or satisfaction is gained by consumers as a result of the increase or decrease in consumption by one unit. There are three types of marginal utility. They are positive, negative, or zero marginal utility. For instance, you like eating pizza, the second piece of pizza brings you more satisfaction than only eating one piece of pizza. It means your marginal utility from purchasing pizza is positive. However, after eating the second piece you feel full, and you would not feel any better from eating the third piece. This means your marginal utility from eating pizza is zero. Moreover, you might feel sick if you eat more than three pieces of pizza. At this time, your marginal utility is negative. In other words, a negative marginal utility indicates that every unit of goods or service consumed will do more harm than good, which will ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Neoclassical Economics
Neoclassical economics is an approach to economics in which the production, consumption and valuation (pricing) of goods and services are observed as driven by the supply and demand model. According to this line of thought, the value of a good or service is determined through a hypothetical maximization of utility by income-constrained individuals and of profits by firms facing production costs and employing available information and factors of production. This approach has often been justified by appealing to rational choice theory, a theory that has come under considerable question in recent years. Neoclassical economics historically dominated macroeconomics and, together with Keynesian economics, formed the neoclassical synthesis which dominated mainstream economics as "neo-Keynesian economics" from the 1950s to the 1970s.Clark, B. (1998). ''Principles of political economy: A comparative approach''. Westport, Connecticut: Praeger. Nadeau, R. L. (2003). ''The Wealth of ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Economics
Economics () is the social science that studies the production, distribution, and consumption of goods and services. Economics focuses on the behaviour and interactions of economic agents and how economies work. Microeconomics analyzes what's viewed as basic elements in the economy, including individual agents and markets, their interactions, and the outcomes of interactions. Individual agents may include, for example, households, firms, buyers, and sellers. Macroeconomics analyzes the economy as a system where production, consumption, saving, and investment interact, and factors affecting it: employment of the resources of labour, capital, and land, currency inflation, economic growth, and public policies that have impact on these elements. Other broad distinctions within economics include those between positive economics, describing "what is", and normative economics, advocating "what ought to be"; between economic theory and applied economics; between rati ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Marginal Value
A marginal value is #a value that holds true given particular constraints, #the ''change'' in a value associated with a specific change in some independent variable, whether it be of that variable or of a dependent variable, or # hen underlying values are quantifiedthe ''ratio'' of the change of a dependent variable to that of the independent variable. (This third case is actually a special case of the second). In the case of differentiability, at the limit, a marginal change is a mathematical differential, or the corresponding mathematical derivative. These uses of the term “marginal” are especially common in economics, and result from conceptualizing constraints as ''borders'' or as ''margins''. Wicksteed, Philip Henry; ''The Common Sense of Political Economy'' (1910),] Bk I Ch 2 and elsewhere. The sorts of marginal values most common to economic analysis are those associated with ''unit'' changes of resources and, in mainstream economics, those associated with ''infinite ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Tautology (logic)
In mathematical logic, a tautology (from el, ταυτολογία) is a formula or assertion that is true in every possible interpretation. An example is "x=y or x≠y". Similarly, "either the ball is green, or the ball is not green" is always true, regardless of the colour of the ball. The philosopher Ludwig Wittgenstein first applied the term to redundancies of propositional logic in 1921, borrowing from rhetoric, where a tautology is a repetitive statement. In logic, a formula is satisfiable if it is true under at least one interpretation, and thus a tautology is a formula whose negation is unsatisfiable. In other words, it cannot be false. It cannot be untrue. Unsatisfiable statements, both through negation and affirmation, are known formally as contradictions. A formula that is neither a tautology nor a contradiction is said to be logically contingent. Such a formula can be made either true or false based on the values assigned to its propositional variables. The d ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Hermann Heinrich Gossen
Hermann Heinrich Gossen (7 September 1810 – 13 February 1858) was a Prussian economist who is often regarded as the first to elaborate a general theory of marginal utility. Life and work Gossen studied in Bonn, then worked in the Prussian administration until retiring in 1847, after which he sold insurance until his death. Prior to Gossen, a number of theorists, including Gabriel Cramer, Daniel Bernoulli, William Forster Lloyd, Nassau William Senior, and Jules Dupuit had employed or asserted the significance of some notion of marginal utility. But Cramer, Bernoulli, and Dupuit had focussed upon specific problems, Lloyd had not presented any application, and if Senior actually employed to the development of more general theory then he did so in language that caused the application to be missed by most readers. Gossen's book ''Die Entwickelung der Gesetze des menschlichen Verkehrs, und der daraus fließenden Regeln für menschliches Handeln'' (''The Development of the Laws of Hu ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Instrumentalism
In philosophy of science and in epistemology, instrumentalism is a methodological view that ideas are useful instruments, and that the worth of an idea is based on how effective it is in explaining and predicting phenomena. According to instrumentalists, a successful scientific theory reveals nothing known either true or false about nature's unobservable objects, properties or processes. Scientific theory is merely a tool whereby humans predict ''observations'' in a particular domain of nature by formulating laws, which state or summarize regularities, while theories themselves do not reveal supposedly hidden aspects of nature that somehow ''explain'' these laws. Instrumentalism is a perspective originally introduced by Pierre Duhem in 1906.Roberto Torretti, ''The Philosophy of Physics'' (Cambridge: Cambridge University Press, 1999)pp. 242–43 "Like Whewell and Mach, Duhem was a practicing scientist who devoted an important part of his adult life to the history and philosophy of ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Partial Derivative
In mathematics, a partial derivative of a function of several variables is its derivative with respect to one of those variables, with the others held constant (as opposed to the total derivative, in which all variables are allowed to vary). Partial derivatives are used in vector calculus and differential geometry. The partial derivative of a function f(x, y, \dots) with respect to the variable x is variously denoted by It can be thought of as the rate of change of the function in the x-direction. Sometimes, for z=f(x, y, \ldots), the partial derivative of z with respect to x is denoted as \tfrac. Since a partial derivative generally has the same arguments as the original function, its functional dependence is sometimes explicitly signified by the notation, such as in: :f'_x(x, y, \ldots), \frac (x, y, \ldots). The symbol used to denote partial derivatives is ∂. One of the first known uses of this symbol in mathematics is by Marquis de Condorcet from 1770, who used it f ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Dependent And Independent Variables
Dependent and independent variables are variables in mathematical modeling, statistical modeling and experimental sciences. Dependent variables receive this name because, in an experiment, their values are studied under the supposition or demand that they depend, by some law or rule (e.g., by a mathematical function), on the values of other variables. Independent variables, in turn, are not seen as depending on any other variable in the scope of the experiment in question. In this sense, some common independent variables are time, space, density, mass, fluid flow rate, and previous values of some observed value of interest (e.g. human population size) to predict future values (the dependent variable). Of the two, it is always the dependent variable whose variation is being studied, by altering inputs, also known as regressors in a statistical context. In an experiment, any variable that can be attributed a value without attributing a value to any other variable is called an ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Normative Economics
Normative economics (as opposed to positive economics) is the part of economics that deals with normative statements. It focuses on the idea of fairness and what the outcome of the economy or goals of public policy ''ought to be''. Paul A. Samuelson and William D. Nordhaus (2004). ''Economics'', 18th ed., pp. 5-6 & ndGlossary of Terms, "Normative vs. positive economics." Economists commonly prefer to distinguish normative economics ("what ought to be" in economic matters) from positive economics ("what is"). Many normative (value) judgments, however, are held conditionally, to be given up if facts or knowledge of facts changes, so that a change of values may be purely scientific. On the other hand, welfare economist Amartya Sen distinguishes ''basic (normative) judgements'', which do not depend on such knowledge, from ''nonbasic'' judgments, which do. He said, "no judgments are demonstrably basic" while some value judgments may be shown to be nonbasic. This leaves open the poss ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Special Case
In logic, especially as applied in mathematics, concept is a special case or specialization of concept precisely if every instance of is also an instance of but not vice versa, or equivalently, if is a generalization of . A limiting case is a type of special case which is arrived at by taking some aspect of the concept to the extreme of what is permitted in the general case. A degenerate case is a special case which is in some way qualitatively different from almost all of the cases allowed. Special case examples include the following: * All squares are rectangles (but not all rectangles are squares); therefore the square is a special case of the rectangle. * Fermat's Last Theorem, that has no solutions in positive integers with , is a special case of Beal's conjecture The Beal conjecture is the following conjecture in number theory: :If :: A^x +B^y = C^z, :where ''A'', ''B'', ''C'', ''x'', ''y'', and ''z'' are positive integers with ''x'', ''y'', ''z'' ≥ 3, t ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Journal Of Political Economy
The ''Journal of Political Economy'' is a monthly peer-reviewed academic journal published by the University of Chicago Press. Established by James Laurence Laughlin in 1892, it covers both theoretical and empirical economics. In the past, the journal published quarterly from its introduction through 1905, ten issues per volume from 1906 through 1921, and bimonthly from 1922 through 2019. The editor-in-chief is Magne Mogstad ( University of Chicago). It is considered one of the top five journals in economics. Abstracting and indexing The journal is abstracted and indexed in EBSCO, ProQuest, EconLit , Research Papers in Economics, Current Contents/Social & Behavioral Sciences, and the Social Sciences Citation Index. According to the ''Journal Citation Reports'', the journal has a 2020 impact factor of 9.103, ranking it 4/376 journals in the category "Economics". The journal is department-owned University of Chicago journal. Notable papers Among the most influential pa ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
