Economic laws
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Economic laws are statements of general tendencies that describe unchanging relationships between economic events under certain circumstances. They are postulated by economists based on observation and analysis, and include laws like the Law of Demand, Law of Supply, and Law of Diminishing Marginal Utility. Economic laws are less exact than natural laws, are essentially hypothetical, relative, and qualitative rather than quantitative. They apply on average under normal conditions and describe human behavior that can be measured in terms of money.
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However, a discipline study of the wealth producing
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Adam Smith argued that a country has an absolute advantage in the production of a product when it is more efficient than any other country producing it.
Countries should specialize in the production of goods for which they have an absolute advantage and then trade these goods for the goods produced by other countries
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The document discusses the concept of scarcity in economics. It defines scarcity as limited resources being unable to meet unlimited wants, creating an economic problem. Economics is then presented as the study of allocating scarce resources efficiently to meet wants. The relationship between scarcity and economics is explored, with scarcity giving rise to the need for economics to address this issue through resource allocation. Key terms like demand, supply, and markets are also introduced in the summary.
Introduction to economics
The document provides an overview of introductory economic concepts including definitions of economics by Adam Smith, Marshall, Robbins, and Samuelson focusing on wealth, welfare, scarcity, and growth. It discusses microeconomics and macroeconomics, the subject matter and scope of economics, relationships to other subjects like political science and statistics, and methods of economic analysis including inductive and deductive approaches. The document appears to be teaching materials for an introductory economics course that defines fundamental terms and outlines the nature and scope of the economic field of study.
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Policy support for harnessing informal sector entrepreneurs
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Market-based Solutions to Public Policy - Presentation by Tom G Palmer at CCS...
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Economics
The document discusses the definitions and concepts of economics. It begins by exploring the Greek origins of the word "economics" and its meaning of "household management." It then examines three classic definitions: [1] Adam Smith's wealth definition which views economics as the science of wealth, [2] Alfred Marshall's welfare definition which focuses on material well-being, and [3] Lionel Robbins' scarcity definition which emphasizes human behavior under scarcity. The document also briefly outlines microeconomics, macroeconomics, demand and determinants of demand, and exceptions to the law of demand.
Economic Analysis Of Law
This document discusses the economic analysis of law and its interaction with various legal fields such as contract law, tort law, and criminal law. It examines how economic considerations can provide insights into the costs and benefits associated with legal rules and how individuals and organizations respond based on these economic factors. It also explores the formal and informal dimensions of law and how people make decisions based on comparing the costs of complying with formal legal requirements versus operating informally.
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According to Kindleberger, “An economic theory is a statement of the relationship among economic variables. It is a simplified representation of a real situation. Economic theories are broadly divided into two groups- Micro and Macro economic theories. A micro economic theory explains the relationship between two individual variables. A macro economic theory expresses the relationship between two aggregate variables.
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Economic laws
- 2. A law is an explanation of unchanging relationship among events. A law is a theory which is always true under a set of circumstances. Newton’s Law, law of Gravity, Law of Motion etc., Law
- 3. Economic laws are the statements of general tendencies. Economic laws are postulated by eminent economist based on observation and analysis. Law of Demand, Law of Supply, Law of Diminishing Marginal Utility and Law of Diminishing Returns Economic laws
- 4. Marshall’s definition “Economic laws, or statements of economic tendencies, are those social laws, which relate to those branches of conduct in which the strength of the motives chiefly concerned can be measured by money price.” It can be inferred from this definition that economic laws are : (a) Statements of economic tendencies, (b) Social laws, (c) Concerned with human behaviour, and (d) Human behaviour can be measured in money
- 5. Important characteristics of Economic laws (1) Economic Laws are the statements of Economic tendencies (2) Laws of Economics are less exact. (3)Economic laws are essentially hypothetical (4) Economic laws are Relative (5)Economic laws are qualitative and not quantitative
- 6. Continued…… (6) Applies on the average in normal conditions (7) Laws of ‘economics are more exact than the laws of other social sciences (8) Economic laws are Behaviourist: (9)Economic laws are Indicative (10)Truisms or Axioms (11) Historico-Relative
- 7. THANK YOU