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In the philosophy of economics, economics is often divided into positive (or descriptive) and normative (or prescriptive) economics.Positive economics focuses on the description, quantification and explanation of economic phenomena, [1] while normative economics discusses prescriptions for what actions individuals or societies should or should not take.
Economic events are considered as processes of creation, motion and distribution of value that is firstly measured as exchange value.The factor interpretation of the exchange value, accepted by Econodynamics, is based on the Smith-Marx's labour theory of value, according to which efforts of workers are the most essential production factor.
The application of economic theory and econometrics in specific settings. As one of the two sets of fields of economics (the other being the core), [11] it is typically characterized by the application of the core, i.e. economic theory and econometrics, to address practical issues in a range of fields. appropriate technology
On the other hand, MIT economist Franklin Fisher has noted that the folk theorem is not a positive theory. [13] In considering, for instance, oligopoly behavior, the folk theorem does not tell the economist what firms will do, but rather that cost and demand functions are not sufficient for a general theory of oligopoly, and the economists must ...
Complexity-theoretic thinking to understand economic problems has been present since their inception as academic disciplines. Research has shown that no two separate micro-events are completely isolated, [16] and there is a relationship that forms a macroeconomic structure. However, the relationship is not always in one direction; there is a ...
Of course, this theorem is considered irrelevant by economists who do not believe that general equilibrium theory correctly predicts the functioning of market economies; but it is given great importance by neoclassical economists and it is the theoretical reason given by them for combating monopolies and for antitrust legislation.
In probability theory, an event is a set of outcomes of an experiment (a subset of the sample space) to which a probability is assigned. [1] A single outcome may be an element of many different events, [2] and different events in an experiment are usually not equally likely, since they may include very different groups of outcomes. [3]
The theory of subjective expected utility combines two concepts: first, a personal utility function, and second, a personal probability distribution (usually based on Bayesian probability theory). This theoretical model has been known for its clear and elegant structure and its considered by some researchers to be "the most brilliant axiomatic ...