MARXIAN THEORY OF ECONOMIC DEVELOPMENT Karl Marx is one of the few thinkers in History who has had an influence on millions of people‚ ranked with Christ and Mohammed‚ if we are to judge him by the number of followers. He predicted the inevitable doom of capitalism and imposed on his ideas that communism has built its edifice (large structure). He based his predictions on a sweeping analysis of the process of capitalists’ economic dvlpt. MARXIAN INTERPRETATION OF HISTORY General framework of Mark’s
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CLASSICAL THEORY -The classical theory of employment is grounded in Say’s Law‚ the classical interest rate mechanism‚ and downwardly flexible prices and wages. -The aggregate supply curve is vertical at the full-employment level of output; the aggregate demand curve is stable if the money supply is constant. -Government macroeconomic policies are unnecessary and counter-productive; automatic‚ built-in mechanisms provide for full-employment output. KEYNESIAN THEORY -Keynesian
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SELF-INTEREST‚ ALTRUISM‚ INCENTIVES‚ & AGENCY THEORY Michael C. Jensen Harvard Business School MJensen@hbs.edu Abstract Many scholars‚ business people‚ policy makers‚ and religious leaders are suspicious of self-interest and incentives and often oppose the use of incentives to motivate managers‚ employees‚ public servants‚ or the public itself. I address here some of these issues regarding human nature and organizations raised by Michael Brennan (1994) in “Incentives‚ Rationality‚ and Society
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from Irving Fisher’s The Theory of Interest‚ 1930 Preface -- It was the misunderstanding of my theory of interest put forward in my 1907 book the Rate of Interest that led me to adopt the catchword “investment opportunity” as a substitute for the inadequate term “productivity” which had come into general use. This combined with my early “impatience theory” led to the impatience and opportunity theory which can be said to be distinct from all other theories of interest because it explicitly analyzes
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1. Neoclassical Theory Causes of Economic Growth a. Increase in labor quantity (population growth) b. Improvement of labour through training and education c. Increase in capital (higher savings and investments) d. Improvements in technology Neoclassicals believe that government control inhibits growth as it encourages corruption‚ inefficiency and offers no profit motive for entrepreneurship. Underdevelopment is seen as the result of government inefficient use of resources and state intervention
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Automotive Industry ECONOMIC THEORY Automotive Industry In the automotive industry there are many factors and policies that affect the automotive industry and its performance. The following topics and their impacts on the automotive industry are as follows: Supply and Demand (Sales) North American Free Trade Agreement (NAFTA) External Affects Labor Supply and Demand Federal Policies Economic Influence Supply And Demand High competition from foreign car imports causing US manufactures
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Global Economics Group Exercise 2 Team 1 Alejandra Ojeda‚ Steven Veydt‚ Donghwan Kim‚ Yijun Liu‚ Nikita Buhktoyarov November 24th 2014 1. Explain how each of the following events affects the monetary base‚ the M1 money multiplier (checking accounts)‚ and the money supply (Currency in circulation) a) The Central Bank buys bonds in the open market If the Central Bank buys bonds‚ the monetary base increases because of the amount of the currency in circulation and the bank reserves purchase. Both
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POSITION PAPER 1. Thomas Robert Malthus Economic theory: In his famous treatise ’An Essay on the Principles of Population’‚ Malthus stated that‚ The populations of the world would increase in geometric proportions while the food resources available for them would increase only in arithmetic proportions. Source: http://www.buzzle.com/articles/thomas-malthus-theory-of-population.html Stand on the theory: I agree to the point that he wants to convey. The human population will increase faster
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goods and decreases the demand for inferior goods. * Consumers’ Expectations- If consumers expect a product’s quality to increase in the near future‚ they will have a lower demand for the product today. Vice versa. Chapter One: Price Theory * Economics is based on incentives. People respond to incentives. * If the price of Pepsi increases‚ people realize they must give up more of other goods when they buy another Pepsi. * Scarcity = finite resources and infinite wants‚ we must
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……………………… BARAZA A. DANIEL E37/1625/2011 ……………………… LUMONYE FAITH JUMA E35S/11325/2010 ……………………… DOUGHLAS NYAKUNDI E37/1509/2011 ……………………… FREDDICK ACHACH E37/1614/2011 ……………………… Rostow’s five stages of Development This theory was written by Walt Whiteman Rostow. In 1960 he suggested countries go through fairly linearly and set out number of conditions that were likely to occur in investment‚ consumption and social trends at each state. He also said that a country undergoes
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