The Theories Of Economic Economics - 1417 Words

Imagine a peaceful world where nobody argued about anything and everyone was at peace. That would be nice, but not possible in reality. There is at least two sides to every story, or in this case two sides to every subject. Economists’ have different views on the world, and they cannot agree on a single viewpoint. There is the popular, mainstream economists, known as the neoclassical economist and there are the heterodox economists’ which covers the nonmainstream views. Although the mainstream economics is the one taught in school, its assumptions are there to achieve a certain outcome. The heterodox economist’s assumptions are based on the fact to eliminate extraneous factors. I believe that heterodox economics will start to be considered more in the world of academics and may take the place of the current mainstream economics. The theories of consumption have different viewpoints. Neoclassical consumer theory is the explanation of how consumers allocate incomes to the purchase of different goods and services. In other words, it is how individuals make choices given their income and the price of goods and services. This is how the neoclassical economist is able to understand tastes and how income influences the demand curve. This view is the one that all major textbooks use and the type of economics that students’ are taught. In the viewpoint of the neoclassical economist, consumers are rational decision makers. The consumer behavior is best understood byShow MoreRelatedEconomic Theory1225 Words   |  5 PagesEconomic Theory Economic Theory Jose E Mendoza Allied American University Author Note This paper was prepared for ECN 150, Introduction to Microeconomics, Module 2 Homework Assignment taught by Nikki Follis. Part I After reading the two articles in Modules 1 and 2 related to Economic Theory (first,â€Å"How Did Economists Get It So Wrong† and second, â€Å"History of Economics Playground†), reconstruct what happenedRead MoreEconomic Theories On Economic Migration3203 Words   |  13 Pages3 Introduction 4 Literature Review 5 Marxism Approach on Economic Migration 6 Post-Colonialism Approach on Economic Migration 7 Comparing the views of Marxist Post-Colonialist 8 Micro Macro Perspective on Economic Migration 9 Findings Discussion 10 Conclusion 11 Reference Bibliography 12 â€Æ' INTRODUCTION With the effect of globalization and modernization of the economy in the beginning of twentieth century several economic theories on migration had been developed that shows the importanceRead MoreTheories of Economics509 Words   |  2 PagesClassical Economics stresses balance through individual interests within markets. The theory explains a society that acts as a macrocosmic reflection of the collection of individual interests. Sound Finance is a view of fiscal policy that the government budget should always be balanced except in wartime. This view was based on a combination of political and economic grounds, but primarily on political grounds. Sound finance has been abandoned by todays economy as credit is treated as a form of currencyRead MoreThe Economic Theories Of Supply Side Economics1485 Words   |  6 PagesSupply-side economics is better known as Reaganomics, or the trickle-down economic policy. It is an economic philosophy that conveys the notion greater tax cuts for investors and entrepreneurs provide incentives to save and invest. This economic theory goes further to suggest that in turn, there are economic benefits which will trickle down into the overall economy. The key to answering whether supply side was successful is grounded in a sound understanding of what it is. Like most economic theoriesRead MoreThe Theory Of Economic Development Essay1477 Words   |  6 PagesThe theory of economic development has equipped the underdeveloped countries with a choice between ‘balanced’ and ‘unbalanced’ growth that has been one of the most tendentious topics. One group advocates the theory of Balanced Growth and refutes, in almost unequivocal terms, the virtues and utility of the doctrine of Unbalanced Growth, which the other group endorses with great insistence. These approaches towards economic development have been expounded and interpreted in various ways in the literatureRead MoreThe Theory Of Keynesian Economics916 Words   |  4 Pagesâ€Å"classical theory had difficulty in explaining why the depression kept getting worse† (Cheung, n.d., para. 1). Many economists have attempted to develop theories that help to explain changing circumstances and why things kept getting worse. John Maynard Keynes, a British economis t also known as the founder of macroeconomics, saw this as an opportunity and began to develop alternative ideas. His alternative ideas led to the idea of Keynesian economics. What is Keynesian Economics? KeynesianRead MoreApplied Economic Theory1086 Words   |  5 PagesApplied Economic Theory United States Mortgage Crisis After rising at an annual rate of nearly 9 percent from 2000 through 2005, house prices have decelerated, even falling in some markets.   At the same time, interest rates on both fixed- and adjustable-rate mortgage loans moved upward, reaching multi-year highs in mid-2006.   Some subprime borrowers with ARMs, who may have counted on refinancing before their payments rose, may not have had enough home equity to qualify for a new loan given theRead MoreThe Theory Of Economic Growth Theory1703 Words   |  7 PagesLiterature review As an important and popular issue in the field of economic research, it attracts many economists and there are many models to explain economic growth. In the history of the development of economic growth theories, there are three important stages which are the Classical Growth theory, the Neoclassical Growth theory and the Endogenous Growth theory. To start with, the Classical Growth theory is based on the Keynesian theory and the representative one is the Harrod–Domar model. It was putRead MoreThe Economists Economic Theory Essay770 Words   |  4 PagesJovanny Ibarra Mr.Nasr Economics 2 December 2016 The Economists What is the best way to earn money. To entrust on someone else like the government or yourself? Two economists, John Maynard Keynes and Friedrich von Hayek had two contrasting views on how the government should handle the market. Keynes believe on the government controlling the market while Hayek wanted the government to stay away from it. Hayek’s economic theory is right because it focuses on us as citizens to have responsibilitiesRead MoreThe Theory Of Economics As A Science1182 Words   |  5 Pageswants. The economists analyse the economic problems as it happens, without adding their feelings, thoughts or them owns assumptions. Economics is based essentially in scarcity, if there is not shortage there would be no need of Economics as a science. As there are limited resources choices have to be made in order to allocate resources and factor of productions. According to Anderton (2008:30) when this allocation happens, results in the origin of the different economics as com plex networks made up of