Verified Document

Economics Is The Study Of Essay

Even searching the Internet for information has a cost, the opportunity cost of one's time. Thus, one will consider the cost of obtaining information before seeking it out to make a decision. The remaining three assumptions of the economic way of thinking deal with the notions of time, personal preferences and predictability. Assumption six makes the point that there are short-run effects and long-run effects for any decision that ought to be considered. For instance, a tariff may increase employment and income in an industry in the short-run, but consumers will decrease their spending on other products in the long-run. Assumption six states the value of a good is subjective and preferences will, therefore, differ between individuals. The final assumption of the economic way of thinking asserts that the test of a theory's validity is its ability to predict how the real world operates. Thus, theory's with greater validity should be given more weight than those with unproven accuracy.

In summary,...

According to one economist, Heyne (Limitations of the economic way of thinking), the economic way of thinking is a "view that emerges from the presupposition that all social phenomena result from interactions among the choices that individuals make after calculating the expected benefits and costs to themselves. This perspective is very useful when employed to explain the working of the largely impersonal network of transactions that we call the market system or simply the economy."
Bibliography

Financial & Investment Dictionary. http://www.answers.com/topic/economics

Heyne, P. Limitations of the economic ways of thinking. http://www.acton.org/publications/randl/rl_article_278.php

The economic way of thinking. http://spruce.flint.umich.edu/~mjperry/notes1.htm

Sources used in this document:
Bibliography

Financial & Investment Dictionary. http://www.answers.com/topic/economics

Heyne, P. Limitations of the economic ways of thinking. http://www.acton.org/publications/randl/rl_article_278.php

The economic way of thinking. http://spruce.flint.umich.edu/~mjperry/notes1.htm
Cite this Document:
Copy Bibliography Citation

Related Documents

Economics Studying in United States Have Always
Words: 637 Length: 2 Document Type: Term Paper

Economics Studying in United States have always felt the need to challenge myself and learn from the situations that I have overcome in my life. These challenges and obstacles have provided me the opportunity to be more independent and responsible. I always hade passion for English and knew that learning it would always be a challenge for me. Therefore, just two-year ago, I decided to take up this challenge and went

Economic Models of Voting
Words: 1228 Length: 4 Document Type: Term Paper

Economic Models of Voting It is generally believed that the more the economy grows (or slows down), the more all voters reward (or punish) the incumbent party for improving (or worsening) their economic situation. Presidential approval ratings often drive the results of the economic models of voting. These approval ratings are typically conceptualized as capturing both non-economic factors and other economic factors beyond near-election economic growth. This paper will discuss two

Economics - How China's Economy
Words: 2387 Length: 7 Document Type: Essay

Aside these impacts however, more salient effects are observable, such as a necessity to change internal practices of business. A relevant example in this sense is given by Wal-Mart, in its quality of America's largest retailer, which decided, unlike within the U.S., to allow Chinese employees to unionize (Dessler, 2006). The official approach of the Chinese leaders was that of implementing reforms which further capitalize on the low cost labor

Economics Is Intended to Use
Words: 1204 Length: 4 Document Type: Article Review

The author makes mention of potential careers in economics, but also points out how one will use one's economics background even if he or she does not ultimately pursue an economics career. The information that the author presents in this section is realistic and accurate, and includes ways to follow-up on an undergraduate economics education. It is easy enough to understand these concepts the way they are presented. By no

Economic Modelling and Exchange Risk Exposure
Words: 5805 Length: 16 Document Type: Essay

Econometric Modeling Financial risk is currently at the center of all economic activity due to the incredibly unstable financial environment of the world economy. As a consequence the search for ways to reduce risk has taken a front seat in the important issues of our day. Several instruments exist in order to increase risk reduction possibilities, these include forward and futures contracts as well as various derivatives. That the most optimal

Economic Model for Monopoly Analysis
Words: 14390 Length: 30 Document Type: Term Paper

The deal was immediately criticized as anti-competitive by William Kennard, the chairman of the Federal Communications Commission, and by the Communications Workers of America, which represents some workers at both of the merged companies. But neither government regulators nor union bureaucrats will have the slightest impact on the latest merger. They have neither the power nor the desire to oppose the plans of the giant telecommunications monopolies. More substantial opposition

Sign Up for Unlimited Study Help

Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.

Get Started Now