Search results
Results from the WOW.Com Content Network
Under the standard assumption of neoclassical economics that goods and services are continuously divisible, the marginal rates of substitution will be the same regardless of the direction of exchange, and will correspond to the slope of an indifference curve (more precisely, to the slope multiplied by −1) passing through the consumption bundle in question, at that point: mathematically, it ...
MRS i is individual i 's marginal rate of substitution and MRT is the economy's marginal rate of transformation [2] between the public good and an arbitrarily chosen private good. Note that while the marginal rates of substitution are indexed by individuals, the marginal rate of transformation is not; it is an economy wide rate.
The economic history of the United States spans the colonial era through the 21st century. The initial settlements depended on agriculture and hunting/trapping, later adding international trade, manufacturing, and finally, services, to the point where agriculture represented less than 2% of GDP .
The general definition of the elasticity of X with respect to Y is = % % , which reduces to = for infinitesimal changes and differentiable variables. The elasticity of substitution is the change in the ratio of the use of two goods with respect to the ratio of their marginal values or prices.
Until a United States Supreme Court decision in 1895, all income taxes were deemed to be excises (i.e., indirect taxes). The Revenue Act of 1861 established the first income tax in the United States, to pay for the cost of the American Civil War. This income tax was abolished after the war, in 1872.
A Robinson Crusoe economy is a simple framework used to study some fundamental issues in economics. [1] It assumes an economy with one consumer, one producer and two goods. The title "Robinson Crusoe" is a reference to the 1719 novel of the same name authored by Daniel Defo
The Price of Anarchy (PoA) [1] is a concept in economics and game theory that measures how the efficiency of a system degrades due to selfish behavior of its agents. It is a general notion that can be extended to diverse systems and notions of efficiency.
Although the book was described by the Cato Institute as among the greatest economics books in the 20th century, and A Monetary History of the United States is widely considered to be among the most influential economics books ever made, [246] [247] it has endured criticisms for its conclusion that the Federal Reserve was to blame for the Great ...