We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Nobody downloaded yet

Reading commentaries (( economics )) - Assignment Example

Comments (0)
Date Chapter 14 of the book dwells on the thoughts and influences of neoclassical economists, whose ideas had a profound and pervasive impact on the political, social and economic arena. Neoclassical economic theories formed the benchmark for modern economic theories…
Download full paper
Reading commentaries (( economics ))
Read TextPreview

Extract of sample
Reading commentaries (( economics ))

Download file to see previous pages... The chapter brings readers to attention of the failure of neoclassical theorists to recognize the upheavals that capitalism was going through, which culminated into emergence of new schools of thought by such economists as Bastiat. Capitalism was subverted by a tinge of imperialism, coupled by a severe depression that ultimately resulted in the Great Depression (Hunt and Lautzenheiser 372). Neoclassical economists assumed normal periods of boom and depression. They also assumed that the economy had self-correcting mechanisms which would automatically fall in action whenever the economy underwent depression. Social unrests such as the World War 1, emergence of fascism and Soviet Revolution had a pervasive effect on the stability of capitalism. The chapter reveals that this instability marked the departure of such economists as Keynes from the classical school of thought. Keynes felt the need to reassess his thinking or ideas which were hedged on classical school of thought. In explaining the failures of the classical economists, the chapter brings to light two untenable issues that dominated the classical theories. The first issue relates to the concept of utility. ...
Classical economists assumed that in equilibrium, the entrepreneur did not make profits. They also failed to analyze the negative features associated with the production process under capitalism. The concept of utility and maximizing profits is clearly elaborated in the chapter. Consumers seek to maximize utility out of a given bundle of good while firms seek to maximize profits. The chapter notes that classical economists came up with abstract ideas to explain the concept of utility maximization. For example, classical economists used indifference curves in their explanation of utility concept and diminishing marginal utility. Classical economists assumed an ordinal approach to consumer preference. The authors have dismissed this as “conceptually impossible” (Hunt and Lautzenheiser 374). A graphical approach has enabled readers to understand the concept of maximizing utility. The assumption here is that there is consistency in the choice made by consumers and that there are only two commodities involved (Hunt and Lautzenheiser 376). The level of consumers’ income acts as the budget constraint. The concept of indifference curves enabled marginal utility of goods to be measured through analysis of the slope of indifference curves. The concept was also important in determining the equilibrium point at which a firm should produce through the use of isoquants. The chapter also explains how a production possibility frontier was used to arrive at combinations of goods that could possibly be produced in a situation whereby there was efficient utilization of capital and labor in the society (Hunt and Lautzenheiser 375). The chapter has devoted to highlighting key criticisms of the neoclassical economics in order to enable students construct balanced opinions. The ...Download file to see next pagesRead More
Comments (0)
Click to create a comment or rate a document
There is a reduction in growth rate as experienced in other developing countries for example 3.2%-2.6% rates in Kenya during the same period. Like other developing country, its population has doubled since 1990 due to the high population growth rate. However, its fertility rate is reducing just as the case in other developing countries for example from 7.0% between 1990-1995 and to a projected rate of 4.8% between 2010-2015.
2 Pages(500 words)Assignment
The disappearing jobs and the devaluation in the home prices had compelled the consumers to cut down on their costs which adversely affected the labor market as the business laid off their workers to reduce costs, eventually making the country enter into a vicious downward cycle.
2 Pages(500 words)Assignment
oyment is perilous for a country which is the reason why the governments of both developing and developed countries are taking steps to cope with this problem in a better way. Actually, when employment starts to create problems, no one but government can handle it in the right
6 Pages(1500 words)Assignment
Oftentimes, economics strongly asserts or assumes that the world behaves according to the models that it has developed and recommends policies based on models that do not adequately consider or factor in social and historical
5 Pages(1250 words)Assignment
The market system is said to be a very just system where everyone gets what he or she deserves and there are no monopolies and government control on prices. There are many reasons why market system is considered the best mechanism of allocating scare resources.
12 Pages(3000 words)Assignment
“The Hunt brothers believed that inflation would result in silver becoming a haven, just like its more expensive cousin, gold... Bunker foresaw at least a tenfold increase in the price of silver as a result of the plummeting
10 Pages(2500 words)Assignment
The overall structure of the industry suggest that there are two type of producers i.e. the one who produce and manufacture mobile phones and other ones who provide data services to communicate and perform other tasks
8 Pages(2000 words)Assignment
p1 by purchasing excess supply, there will be a problem in case there will be a rise in supply due to better than predictable yields of wheat at harvest time. This will cause the supply of wheat to shift out to Supply of wheat 2 as shown in graph putting down ward pressure on
2 Pages(500 words)Assignment
In free trade treaties, two or more countries come together to eliminate barriers to trade, which are customs and/or non-customs in nature. Under customs union,
1 Pages(250 words)Assignment
Reading Assessment
In 1945, U.S. congress passed war brides act, an act that allowed foreign-born wives of American ex-soldiers to migrate to New York.
1 Pages(250 words)Assignment
Let us find you another Assignment on topic Reading commentaries (( economics )) for FREE!
Contact us:
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us