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Bliss Point (economics)
In economics, the bliss point is a quantity of consumption where any further increase would make the consumer less satisfied. It is a quantity of consumption which maximizes utility in the absence of budget constraint. In other words, it refers to the amount of consumption that would be chosen by a person so rich that money imposed no constraint on their decisions. See also * Economic satiation The economic principle of satiation is the effect whereby the more of a good one possesses, the less one is willing to give up to get more of it. This effect is caused by diminishing marginal utility, the effect whereby the consumer gains less util ... * Keynes–Ramsey rule References Consumption Consumer theory {{microeconomics-stub ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Economics
Economics () is a behavioral science that studies the Production (economics), production, distribution (economics), distribution, and Consumption (economics), consumption of goods and services. Economics focuses on the behaviour and interactions of Agent (economics), economic agents and how economy, economies work. Microeconomics analyses what is viewed as basic elements within economy, economies, including individual agents and market (economics), markets, their interactions, and the outcomes of interactions. Individual agents may include, for example, households, firms, buyers, and sellers. Macroeconomics analyses economies as systems where production, distribution, consumption, savings, and Expenditure, investment expenditure interact; and the factors of production affecting them, such as: Labour (human activity), labour, Capital (economics), capital, Land (economics), land, and Entrepreneurship, enterprise, inflation, economic growth, and public policies that impact gloss ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Consumer
A consumer is a person or a group who intends to order, or use purchased goods, products, or services primarily for personal, social, family, household and similar needs, who is not directly related to entrepreneurial or business activities. The term most commonly refers to a person who purchases goods and services for personal use. Rights "Consumers, by definition, include us all", said President John F. Kennedy, offering his definition to the United States Congress on March 15, 1962. This speech became the basis for the creation of World Consumer Rights Day, now celebrated on March 15. In his speech, John Fitzgerald Kennedy outlined the integral responsibility to consumers from their respective governments to help exercise consumers' rights, including: *The right to safety: To be protected against the marketing of goods that are hazardous to health or life. *The right to be informed: To be protected against fraudulent, deceitful, or grossly misleading information, adverti ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Utility
In economics, utility is a measure of a certain person's satisfaction from a certain state of the world. Over time, the term has been used with at least two meanings. * In a normative context, utility refers to a goal or objective that we wish to maximize, i.e., an objective function. This kind of utility bears a closer resemblance to the original utilitarian concept, developed by moral philosophers such as Jeremy Bentham and John Stuart Mill. * In a descriptive context, the term refers to an ''apparent'' objective function; such a function is revealed by a person's behavior, and specifically by their preferences over lotteries, which can be any quantified choice. The relationship between these two kinds of utility functions has been a source of controversy among both economists and ethicists, with most maintaining that the two are distinct but generally related. Utility function Consider a set of alternatives among which a person has a preference ordering. A utility fu ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Budget Constraint
In economics, a budget constraint represents all the combinations of goods and services that a consumer may purchase given current prices within their given income. Consumer theory uses the concepts of a budget constraint and a preference map as tools to examine the parameters of consumer choices . Both concepts have a ready graphical representation in the two-good case. The consumer can only purchase as much as their income will allow, hence they are constrained by their budget. The equation of a budget constraint is P_x x+P_y y=m where P_x is the price of good , and P_y is the price of good , and is income. Soft budget constraint The concept of soft budget constraint is commonly applied to centrally planned economies, later economies in transition. This theory was originally proposed by János Kornai in 1979. It was used to explain the "economic behavior in socialist economies marked by shortage”. In the socialist transition economy there are soft budget constraint o ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Economic Satiation
The economic principle of satiation is the effect whereby the more of a good one possesses, the less one is willing to give up to get more of it. This effect is caused by diminishing marginal utility, the effect whereby the consumer gains less utility In economics, utility is a measure of a certain person's satisfaction from a certain state of the world. Over time, the term has been used with at least two meanings. * In a normative context, utility refers to a goal or objective that we wish ... per unit of a product the more units consumed. For example, if someone buys a piece of technology or signs up to a social media site, they may enjoy using it; if they then buy more items of technology or sign up to more social media sites, they may enjoy using those items less (and so forth). It can continue to the point where the consumption of an item or group of items becomes a negative experience. See also * Bliss point References Economics effects {{economics-stub ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Keynes–Ramsey Rule
In macroeconomics, the Keynes–Ramsey rule is a necessary condition for the optimality of intertemporal consumption choice. Usually it is expressed as a differential equation relating the rate of change of consumption with interest rates, time preference, and (intertemporal) elasticity of substitution. If derived from a basic Ramsey–Cass–Koopmans model, the Keynes–Ramsey rule may look like :\dot(t) = \sigma \cdot (r - \rho) \cdot c(t) where c(t) is consumption and \dot(t) its change over time (in Newton notation), \rho \in (0,1) is the discount rate, r \in (0,1) is the real interest rate, and \sigma > 0 is the (intertemporal) elasticity of substitution. The Keynes–Ramsey rule is named after Frank P. Ramsey, who derived it in 1928, and his mentor John Maynard Keynes, who provided an economic interpretation. Mathematically, the Keynes–Ramsey rule is a necessary first-order condition for an optimal control problem, also known as an Euler–Lagrange equation In the ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Consumption
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Consumption may refer to: * Eating *Resource consumption *Tuberculosis, an infectious disease, historically known as consumption * Consumer (food chain), receipt of energy by consuming other organisms * Consumption (economics), the purchasing of newly produced goods for current use also defined as the consuming of products ** Consumption function, an economic formula * Consumption (sociology) of resources, associated with social class, identity, group membership, and age See also * * Eating (other) * Consumerism Consumerism is a socio-cultural and economic phenomenon that is typical of industrialized societies. It is characterized by the continuous acquisition of goods and services in ever-increasing quantities. In contemporary consumer society, the ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
