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Economists It Is Practically Impossible Term Paper

Following from this, as more importance is weighted towards behavioural economics, the old theories and rational behaviours of population are believed to weigh less now and thus give misleading guidance to the market players.

4. a. I believe that economic terms can be used for both examination of political actions and such notions as discrimination, marriage, fertility, divorce and the like, or in general the sociological actions. The reasoning for this is the situation in which the economy is currently. Though the business cycles theory have been criticised heavily, I believe that when economy is booming and people have generally positive expectations to the economic development and their personal well being, they are driven away and treat any sociological phenomenon (such as decision to have kids or not, to get married and the like) more optimistically, then if they had the same current income but would have worse expectations to future development. Unfortunately, the society has become too monetary now and focuses more on the consumption rather than spiritual matters, for this reason economic fundamentals being major drivers for any human behaviour. At good economic situation, human beings can make irrational decisions, but in bad economic situations human beings are likely to make more rational economic and sociological choices.

Though it is proven that emotions play a major role within our every day economic and sociological decisions, and that many people often tend to make irrational choices, I believe that human beings can behave differently and tend to be more rational or irrational based on...

How successful has this attempt to broaden the applicability of economics been?
Unfortunately, still very few people within our society is fully aware of the economic forces and how we every day change the state of our economy. Even more importantly, people very often make irrational voting choices and other choices due to this lack of knowledge. Thus, in my view, due to increasing knowledge of psychology and behavioural economics, markets are straying more and more away from their efficiency as those obtaining this knowledge, are able to manipulate with any of the market forces and make people do more and more irrational choices in the favour of those with that knowledge. In this light growing body of this knowledge can be dangerous in the long-term as any artificial manipulation with the market will collapse some time as any asset bubbles do. A good example of shift in classic economic theory is the current situation in the U.S.A. where the biggest share of country GDP is made through services, and the capital to pay for these services is earned either through offering other services or through trading by products produced in other countries.

References

Scott, J. Rational Choice Theory, Available at http://www.essex.ac.uk/~scottj/socscot7.htm

Dugger, W. Veblen's Radical Theory of Social Evolution, Journal of Economic Issues, Volume XL, No. 3, September 2006.

A economists

Sources used in this document:
References

Scott, J. Rational Choice Theory, Available at http://www.essex.ac.uk/~scottj/socscot7.htm

Dugger, W. Veblen's Radical Theory of Social Evolution, Journal of Economic Issues, Volume XL, No. 3, September 2006.

A economists
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