Rules generally promote the greater good, it is intended to guide us to make the best decisions for what needs to be done. Two different forms of Rule utilitarianism, firstly strong rule utilitarianism were the rules are absolute and give no reason to break the rules at any time or place. A weak rule utilitarian could be prepaired to brake rules for the greater good , which offers possible solutions to the weaknesses of strong rule rules . rules can help people with less cognitive ability to benefit each other in the long run. utilitarian rules can help humans understand both higher and lower quality of
He described his purpose as to lay bare “the economic law of motion of modern society.” The second and third volumes were published posthumously, edited by his collaborator Friedrich Engels (1820–95) (The Editors of Encyclopædia Britannica , 2015). Much of Das Kapital spells out Marx’s concept of the “surplus value” of labour and its consequences for capitalism Marx’s concept of the “surplus value” of labor and its consequences for capitalism on das kapital. The nature of commodities, wages and the worker-capitalist relationship, among other things. Surplus value is the incipient capitalist starts by buying in order to sell, and to sell at a higher price, in order to get back by an increment in money surplus-value cannot come either from the buyer buying the commodities under their value, or from the seller selling them above their value. The increase in the value of money that is to be converted into capital cannot take place in the money itself, nor can it originate in the purchase, is not different from its value.
Communication is at the core of persuasion, as the parties seeking to persuade others ought to be clear and firm in the message being passed across. Persuasion has also been generally described by professionals in the related fields to involve more than mere words. Ease of use, aesthetics, interactions and other related factors have been pointed out as equally contributing to the persuasion process, hence the need to give them due consideration. Persuasion is also not coercion, as people are ultimately given the free will to make up their own in the end of any persuasion attempt. Use of coercive and manipulative means to persuade others is generally not accepted as being persuasion.
There he argued for a monetary approach to the origins of the cycle. In his Prices and Production (1931), Hayek argued that the business cycle resulted from the central bank 's inflationary credit expansion and its transmission over time, leading to a capital misallocation caused by the artificially low interest rates. Hayek claimed that "the past instability of the market economy is the consequence of the exclusion of the most important regulator of the market mechanism, money, from itself being regulated by the market process". When Hayek first introduced his business cycle theory, he based his judgment on five building blocks. First, Wicksell’s theory of the cumulative process, in which, price variances are caused by the inconsistency in the price level resulting from fluctuating
This essay discusses the economic contribution of Bertrand by firstly explaining his model and secondly evaluating the value of it in terms of the economical sciences. Next, it is going to state that a more important economic contribution of Bertrand is that his theory was the base for Edgeworth model and finally it establishes that Bertrand was the first economist that examines an oligopoly where firms set prices and therefore it is a
Typically, "rationality" means "sane" or "in a thoughtful clear-headed manner. The rational choice theory defines rational only to say that an individual acts as if balancing costs against benefits to arrive at action that maximizes personal advantage. In rational choice theory, all decisions, crazy or sane, are postulated as mimicking such a "rational" process. Thus the rationality is seen as a property of patterns of choices, rather than of individual choices. This becomes tricky because every person’s rational choice is not the same nor could it be measured successfully with validity and reliability.
Topic Outline: Sir Thomas Mun (17 June 1571 – 21 July 1641) was an English thinker and writer on economics and is often referred to as the last of the early mercantilists. Mun used mercantilist principles to create a proposed set of "means to enrich a kingdom" which centered on ensuring that exports exceeded imports. In other words, Mun promoted a positive balance of trade that would cause England 's wealth to steadily increase. Thomas Mun is also renowned as a sophisticated thinker and has made significant contributions to the history of economic theory. According to Mun, trade was the only way to increase England 's wealth, and he suggested several courses of action.
Several concepts derived from behavioral psychology had an impact on a variety of scientific disciplines, for instance, the model of «bounded rationality» that was introduced by Herbert Simon (1982). Since the inception as an independent field of knowledge, economic theory used the model of economic man (or homo economicus). Such model was created due to the need of studying the problem of selection and motivation in the economic activities of individuals. Herbert Simon claims that economists efforts were focused primarily on the study results of the choices in the economic sphere but the choice as the process dropped out of economic analysis: «in fact, neoclassical theory examines not the selection process but its results» (Simon
The first theory of international trade was mercantilism (T.Men, A.Serra, A.Monkreten). The mercantilists believed that the wealth that nations had were fixed and, consequently, welfare of a country was possible only through the redeployment of existing wealth, at the cost of other countries. The mercantilists believed that for ensuring a constant inflow of gold into the country export should increase and import should be limited. Over time, the best practices of mercantilism began to enter into conflict with the needs of developing capitalism, which required the abolition of feudal restrictions and the transition to free trade. Further development of the theory of international trade received in the writings of the classical
As part of the economic reforms, the public sector reforms are also initiated to improve their efficiency and productivity. In this direction disinvestments and privatization are gaining attention. The new industrial policy provides that "In order to raise resources and encourage wide public participation, a part of the Government shareholding in the public sector, would be offered to mutual funds, financial institutes, and general public and employees". The goals of disinvestments are clearly identified and classified into short term and long term. Disinvestment may be undertaken to reduce or mitigate fiscal deficit, bring about a measure of economic stabilization or to improve efficiency in public enterprises through structural adjustments.