...Marshallian supply- demand synthesis of stable equilibrium T H A T with Marshall the price point o f view delimits the economic field, does not precisely Commit him to the demand-And-supply approach in price analysis. He is, however, .a and-supply economist. This, to be sure, is not much to say. All economists are so, no matter what they may accept, or purport to accept, as the principle, or the problem, or the group of problems, defining the economic field. Always and everywhere with all economists, price is the point of equilibrium or adjustment OJi equilibration between demand and supply. It is, then, safe as far as it goes-but always in the sense of the commonplace or the obvious-to announce that price is determined by demand and supply. It is merely an oracular way of asserting an undisputed thing. Knowing not even so much as the question One may always refer the solution to demand and supply. Never is the argument thereby advanced excepting, perhaps, in the sense of a formal indication of a desirable or necessary line of procedure. No. Influence that does not report itself in demand or in supply terms, or in both, is relevant to price determination. The demand- and-supply expression is merely a formula of the signboard sort pointing to the terms to which all economic analyses must finally get reduced. Difficulties appear only with the attempt to trace out the various influences that finally report themselves in demand and in supply terms-to render an account of these...
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...REACTION PAPER By Elizabeth Orendain-Dela Cruz The Elasticity of Wants Alfred Marshall’s Principles of Economics (1890) Elasticity is a way to measure how the change in one thing (price) causes change in another (demand). Understanding elasticity of demand is valuable in knowing the dynamic response of supply and demand in a market. Such understanding will enable an enterprising person (businessman and/or consumer) to achieve a favorable effect (higher revenue/best value of one’s money) or avoid unintended outcome. For instance, a company (manufacturing commodities like shampoo or toothpaste) considering a price increase might find that by doing so, it lowers profits if demand is highly elastic, as sales would fall sharply. Similarly, a company considering a price cut might find that it does not increase sales, if demand for the product is price inelastic. It is therefore imperative to correctly analyze data on the elasticity of the company’s products in the market before deciding whether to increase or decrease its price viz-a-vis its total revenue and quantity of demand of such products. Alfred Marshall in his 1890 book Principles of Economics, particularly in his discussion on elasticity of wants tried to explain and illustrate the relationship of price and demand and its overarching influence of one over the other and vice versa. His analysis underscored the relationship of price and demand; he demonstrated how an increase or decrease in price affects the decrease and decrease...
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...Euro. J. History of Economic Thought 14:1 55 – 78 March 2007 Alfred Marshall’s critical analysis of scientific management* Katia Caldari The value of a machine to a business can be calculated on the basis of its efficiency for its immediate work. But the value of an employee must be estimated (. . .) with a view to the probable development of his capacities: and the difficulty of this task is increased by the conditions of modern business. (Marshall 1919: 350) The dependence of industrial leadership on individuality and creative faculty has not been greatly effected by the predominance of routine in staple manufacture. (Marshall Library Archive, Red Box 1) 1. Introduction In 1911, in America, F.W. Taylor published his famous book, Principles of Scientific Management, in which new principles of industrial organization are suggested and the advantages of an extreme division of labour and mechanization are stressed. Taylor’s theory of scientific management played a very important role in shaping the early twentieth century factory system, both in America and in Address for correspondence University of Padua, Italy; e-mail: katia.caldari@unipd.it * An earlier draft of this paper was presented at the History of Economics Society’s Annual Meeting, 4 – 7 July 2003, Duke University, Durham. I would like to thank all the participants to my section for their helpful comments, in particular James Henderson, Mary Morgan, Michel Que ´ and Malcolm Rutherford. For...
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...conception of it was very different from Bentham's. Hoping to remedy the problems found in aninductive approach to science, such as confirmation bias, he clearly set forth the premises of falsification as the key component in the scientific method.[3] Mill was also a Member of Parliament and an important figure in liberal political philosophy. Alfred Marshall (1842 - 1924) Alfred Marshall was an Englishman and one of the most influential economists of his time. His book, Principles of Economics (1890), was the dominant economic textbook in England for many years. It brings the ideas of supply and demand, marginal utility and costs of production into a coherent whole. He is known as one of the founders of neoclassical economics. John Maynard Keynes (1883 – 1946) John Maynard Keynes, 1st Baron Keynes of Tilton was a British economist whose ideas, known as Keynesian economics, had a major impact on modern economic and political theory and on many governments' fiscal policies. Milton Friedman (1912 – 2006) Milton Friedman was an American economist and statistician at the University of Chicago, and recipient of the Nobel Memorial Prize in Economic Sciences. Among scholars, he is best known for his theoretical and empirical research, especially consumption analysis, monetary history and theory, and for his demonstration of the complexity of stabilization policy. Joseph Shumpeter (1883 –1950) Joseph Alois Schumpeter was an Austrian-American economist and political scientist. He popularized...
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...were losing out due to bigger inflation rate. This could have been due to lack of financial education and price stickiness spotted from goods and services. Fisher believed that money illusion is somewhat the cause of business cycles. Whenever the economy is in a state of booming there follows high inflation. This causes the nominal interest rates to rise, and hence make businesses to feel that the real interest rates are also high, leading to less borrowing and investments. This however, pulls the economy down and gradually slows the economy leading to a vicious cycle. This pattern is the same for the vice versa situation. Expansions and contractions in an economy create money illusion in the process and stop each stage and reverse the economic activities. With expansionary and contractionary phases, banks have to make corresponding judgment and alter their nominal interest rates, followed by real interest rates. And, this kind of phenomenon is thought as the cause of the business cycle, by Fisher. Question 2 What were the causes of business cycles found by Schumpeter? Schumpeter is an economist who first researched the business cycles and the fluctuations. He identified 3 different phases of the business cycle. First phase was known as the...
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...Introduction to Economics Economics has become quite a popular course at school in recent years. In fact, economics plays an important role in various fields of our life. Most of us may feel that we are familiar with economics, but we seldom think about what economics is and how we can apply it into our future life. These two questions are going to be covered in this essay. 1. What is economics? The definition of economicsWhy should your students consider studying economics at degree level? The Economics Network's website (whystudyeconomics.ac.uk) attempts to answer this question, guiding A-level students through the difficult decision of choosing a degree course and encouraging students who might otherwise not consider a degree in economics that it is a worthwhile subject. It also provides information to students and parents. This year the website has been relaunched with a brand new look. But why should students consider economics and what can they expect? [PUBLICATION ABSTRACT] As a new science, economics has been interpreted by professional economists in different ways. However, the definition of economics in Alfred Marshall’s textbook is as widely accepted today as it was in 1890, when the first edition of Principles of Economics was published. As Marshall (1961, p. 1) indicated, ‘Economics is a study of mankind in the ordinary business of life; it examines that part of individual and social action which is most closely connected with the attainment and with the...
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...The Haitian Diaspora in the Bahamas By Ria N.M. Treco Florida International University Department of International Relations April 17, 2002 Introduction Haiti is the poorest country in the Western Hemisphere with about 80% of the Haitian population living in abject poverty [1]. Many factors contribute to the economic status of this country including: lack of proper education, overpopulation, environmental problems, and subsequent lack of jobs. All of these factors must be pointed out in order for one to fully understand the reasons for the mass migration that is taking place from Haiti into other countries of the world and more specifically into the Bahamas. Haiti has one of the lowest adult literacy rates in the world with only 48.8% of the total population above age 15 being able to read and write simple sentences. According to the Human Development Report, Haiti ranks 134 out of 162 countries for the adult literacy rate. Furthermore, Oxfam International ranks only four countries in the world lower than Haiti for the availability of basic education for its people. There is inadequate healthcare in Haiti as well. In 1999, the US Agency for International Development in Haiti implemented new programs to make Haitians aware of family planning, however, only half the population of Haiti has access to these facilities. This is closely related to the problem of overpopulation in Haiti. Haiti is one of the most densely populated countries of the Western Hemisphere with upwards of...
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...Branches of Economics Branches of Economics Economics has two branches: microeconomics and macroeconomics. Microeconomics is the branch of economics that deals with the personal decisions of consumers and entrepreneurs. Its primary concern is to help consumers and investors make their lives better by increasing their earnings and satisfying their needs despite limited resources. Also included in its study are the consumers' decisions on what products to buy and how the cost of commodities is determined. Macroeconomics deals with the larger aspects of a nation's economy, such as the sectors of agriculture, industry, and service. It aims to (a) speed up the economy's growth rate and increase total production; (b) increase the rate of employment; (c) keep the prices of commodities stable so that they remain affordable; and (d) have sufficient reserves for foreign exchange for importing goods and paying off loans. Economists help in solving problems like unfair wages, rapid population growth, people migration to city centers, high crime incidence, and loss of human resources due to overseas migration. http://hotbabefatchicks.hubpages.com/hub/Branches-of-Economics The first process is MICROECONOMICS:- this is considering the small scale working of economic laws. Here we see a man faced with choice of ways to spend his limited money, or an individual business deciding its pricing policy. It is a branch of economics that studies how the individual parts of the economy, the household...
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...THE STUDY 5. RESEARCH QUESTIONS 6. RESEARCH HYPOTHESIS 7. SIGNIFICANCE OF THE STUDY 8. LIMITATIONS OF THE STUDY 9. DEFINITION OF TERMS. REFERENCES CHAPTER TWO REVIEW OF RELATED LITERATURE 2.1 MEANING AND CONCEPT OF ENTREPRENEURSHIP 2.2 HISTROY OF ENTREPRENUERIAL DEVELOPMENT IN NIGERIA. 2.3 ECONOMIC EFFECT OF ENTREPRENUERSHIP IN NIGERIA. 2.4 IMPACT OF ENTREPRENEURIAL DEVELOPMENT IN EBONYI STATE REFERENCES CHAPTER THREE RESEARCH DESIGN AND METHODOLOGY 3:1 RESEARCH DESIGN 2. AREA OF THE STUDY 3. POPULATION OF THE STUDY 4. SAMPLE AND SAMPLING 3.5 INSTRUMENT OF DATA COLLECTION 3.6 VALIDATIION OF INSTRUMENT 7. RELIABILITY OF THE INSTRUMENT 8. METHOD OF DATA COLLECTION 9. METHOD OF DATA COLLECTION REFERENCES CHAPTER FOUR 4.1 DATA PRESENTATION AND ANALYSIS 4.2 TESTING OF HYPOTHESIS 4.3 SUMMARY OF RESULTS CHAPTER FIVE DISCUSSION OF RESULTS AND FINDINGS 5.1 SUMMARY OF FINDINGS 2. CONCLUSION 5.3 IMPLICATION OF THE RESEARCH FINDINGS 5.4 RECOMMENDATION 5.5 SUGGESTION FOR THE RESEARCH BIBLIOGRAPHY APPENDIX CHAPTER ONE INTRODUCTION 1.1 BACKGROUND OF THE STUDY The worldwide economic depression of the early 80’s caused a rapid deterioration of the Nigeria economy. The output shrank to an all time local and commercial activities, which were consequently reduced, leading to the loss of employment opportunities in the country. Therefore, by the end of 1985, the unemployment situation in Nigeria had increased...
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...history of economics. As early as man learnt how to socialize with the advancement in reasoning and writing, a clear formation of economic structures started. The discipline of economics, as we understand it today, emerged in the 17th and 18th centuries as the western world began its transformation from an agrarian to an industrial society. The word “economics” is derived from the Greek word “okionomia”, which means “household management “or “management of household affairs”. The study of economics became necessary because due to the fact that resources were scarce as well as limited and that not all human wants and desires can be met. How to distribute these resources in the most efficient and “equitable” way is a principal concern of economists. There are three (3) different branches of study in economics that depicts the word “History and Economics”, they are Economic History, History of Economics and The History of Economic Thought. Therefore the History of Economics can be defined as a science of the body of classified knowledge based upon the establishment of certain uniformity in economic life. The body of this work is divided broadly into two parts; * A brief history of economics as a discipline * Some historical positions regarding the history of economics, which include; Mercantilism, Physiocracy, Classicals, Neoclassicals, Marxism, Keynesians, Current theories, and the significance of studying the history of economics SECTION I A Brief History of Economics as a Discipline...
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...Sample Research Paper on Citizenship Introduction Citizenship is being defined as the relationship between the state and individuals. Historically citizenship is being inevitably linked with the state formation. Originally citizenship was denoting residence of people within protected walls of a city. Thus, whoever belonged to a community residing inside the boundaries was considered a citizen. Later this term has acquired a different meaning and the standards and definitions of citizenship have changed. There were many reasons that have caused such changes: history proceeded with its migrations, wars and annexation and along on its way brought new meanings to citizenship. Such change in definition, for example, can be found in suffrage granted to women and the nonpropertied classes. Paupers, convicts and soldiers are another example of how political and civil rights were once a privilege of certain classes only (Dahrendorf, 1974, p. 11). With the introduction of mass democracy and social protection as well as introduction of welfare state a need in the new conception that would look on the relationship on an individual and the state appeared consequently. The norms of citizenship, therefore, have improved with the development of state and citizenship became a multination concept, which implies different things to different nations (Dahrendorf, 1974, p. 12). According to Michael Ignatieff (1995), the introduction of the welfare state can be explained as an attempt to make citizenship...
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...Unit-I Economic Geography Economics: Economics is the social science which studies optimum utilization of scarce resources. It basically studies economic activities, markets, allocation, money, capital, competition, resources, development, growth, welfare, well-being, poverty, deliberate, purposeful, rational, optimal, efficient, and many more. We can also define the economics as "Economics is the study of purposeful human activities in pursuit of satisfying individual or collective wants" "Economics is the study of principles governing the allocation of scarce means among competing ends" Geography: When we think of Geography, we often use the following words or concepts: location, site, place, access, spatial, regional, distance, separation, proximity, speed, mobility, transportation, resources, communication, agglomeration etc. Economic Geography: What are the major factors that explain the recent growth of the Chinese economy and the relative decline of the United States economy? What explains persistent poverty in pockets of global cities such as New York, London and Tokyo, and what prompted the emergence of vast urban slums in Calcutta? What are the impacts of globalization on people’s jobs and livelihoods in different parts of the world? Explaining the causes and consequences of uneven development within and between regions is a central concern for economic geographers. The discipline’s goal has long been to offer multi-faceted explanations for economic processes...
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...in an increase in price (P) and quantity sold (Q) of the product. Supply and demand is an economic model of price determination in a market. It concludes that in a competitive market, the unit price for a particular good will vary until it settles at a point where the quantity demanded by consumers (at current price) will equal the quantity supplied by producers (at current price), resulting in an equilibrium of price and quantity. The four basic laws of supply and demand are:[1] 1. If demand increases and supply remains unchanged, then it leads to higher equilibrium price and quantity. 2. If demand decreases and supply remains unchanged, then it leads to lower equilibrium price and quantity. 3. If supply increases and demand remains unchanged, then it leads to lower equilibrium price and higher quantity. 4. If supply decreases and demand remains unchanged, then it leads to higher price and lower quantity. ------------------------------------------------- The graphical representation of supply and demand The supply-demand model is a partial equilibrium model representing the determination of the price of a particular good and the quantity of that good which is traded. Although it is normal to regard the quantity demanded and the quantity supplied as functions of the price of the good, the standard graphical representation, usually attributed to Alfred Marshall, has price on the vertical axis and quantity on the horizontal axis, the opposite of the standard...
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...Economists often separate the impact of a price change into two components, the substitution effect and the income effect. The substitution effect involves the substitution of good x1 for good x2 or vice-versa due to a change in relative prices of the two goods. The income effect results from an increase or decrease in the consumer’s real income or purchasing power as a result of the price change. The sums of these two effects are called the price effect. Sir John Hicks (1904-1989) awarded the Nobel Laureate in Economics (with Kenneth J. Arrow) in 1972 for work on general equilibrium theory and welfare economics was the founder of the income compensated demand curve, we are going to look at the hicks income compensated demand curve and why it differs from the Marshallian demand function (named after Alfred Marshall) (26 July 1842 – 13 July 1924) was one of the most influential economists of his time. The Compensated Demand Curve Definition: the compensated demand curve is a demand curve that ignores the income effect of a price change, only taking into account the substitution effect. To do this, utility is held constant from the change in the price of the good. We will graphically derive the compensated demand curve from indifference curves and budget constraints by incorporating the substitution and income effects, and use the compensated demand curve to find the compensating variation (refers to the amount of additional money an agent would need to reach its initial...
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...SUCCESS CONCEPT | Table of Content 1. Organization´s Historical Development 3 2. Introduction and Facts about Starbucks 4 3. Impact on Business Trade 7 4. Strategic Issue Analysis 8 5. SWOT Analysis 9 5.1 Strengths 9 5.2 Weaknesses 10 5.3 Opportunities 11 5.4 Threats 12 6. Conclusion & Future Trends 13 References 15 1. Organization´s Historical Development In 2011 the worldwide most well known coffeehouse company celebrated their 40th anniversary. Worldwide, approximately 35 million customers visit a Starbucks coffeehouse each week. Starbucks Coffee Company was founded in 1971 with its first store in Seattle´s Pike Place Market. (Starbucks Company Profile, 2012). The company was established by three partners: the english teacher Jerry Baldwin, the history teacher Zev Siegl, and the writer Gordon Bowker. The three coffee lovers were inspired by coffee roasting businessman Alfred H. Peet, whom they knew personally, to sell high-quality coffee beans and equipment. (Starbucks Company Profile, 2012). Alfred H. Peet was a Netherlands - United States businessman and the founder of Peet's Coffee & Tea in Berkeley, California, in the year 1966. Mr. Peet is most famous for introducing custom Coffee roasting to the United States (Marshall, 2007). The original name of the today well known company “Starbucks” was “Starbucks Coffee, Tea and Spices”, which was later changed to Starbucks...
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