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In social choice and operations research, the utilitarian rule (also called the max-sum rule) is a rule saying that, among all possible alternatives, society should pick the alternative which maximizes the sum of the utilities of all individuals in society.
The rule of one-half estimates the change in consumer surplus for small changes in supply with a constant demand curve. Note that in the special case where the consumer demand curve is linear, consumer surplus is the area of the triangle bounded by the vertical line Q = 0, the horizontal line P = P m k t {\displaystyle P=P_{\mathrm {mkt} }} and ...
Also called resource cost advantage. The ability of a party (whether an individual, firm, or country) to produce a greater quantity of a good, product, or service than competitors using the same amount of resources. absorption The total demand for all final marketed goods and services by all economic agents resident in an economy, regardless of the origin of the goods and services themselves ...
Therefore, the significance of the two welfare theorems of economics is in their ability to generate a framework that has dominated neoclassical thinking about public policy. That framework is that the welfare economics theorems allow the political economy to be studied in the following two situations: "market failure" and "the problem of ...
Economists commonly use the term recession to mean either a period of two successive calendar quarters each having negative growth [clarification needed] of real gross domestic product [1] [2] [3] —that is, of the total amount of goods and services produced within a country—or that provided by the National Bureau of Economic Research (NBER): "...a significant decline in economic activity ...
Walras's law is a consequence of finite budgets. If a consumer spends more on good A then they must spend and therefore demand less of good B, reducing B's price. The sum of the values of excess demands across all markets must equal zero, whether or not the economy is in a general equilibrium.
The rule of sum is an intuitive principle stating that if there are a possible outcomes for an event (or ways to do something) and b possible outcomes for another event (or ways to do another thing), and the two events cannot both occur (or the two things can't both be done), then there are a + b total possible outcomes for the events (or total possible ways to do one of the things).
5+0=5 illustrated with collections of dots. In combinatorics, the addition principle [1] [2] or rule of sum [3] [4] is a basic counting principle.Stated simply, it is the intuitive idea that if we have A number of ways of doing something and B number of ways of doing another thing and we can not do both at the same time, then there are + ways to choose one of the actions.