What is the best macroeconomics book?
Tyler Cowen and Alex Tabarrok of George Mason University have a great macro text:Modern Principles: Macroeconomicshttp://www.amazon.com/Modern-Pri...They are co-authors of the blog Marginal Revolution (marginalrevolution.com). Here is how Alex explains what sets 'Modern Principles' apart:Due to its importance, we have more material on growth and development than any other principles text. In Chapter 6 we lay out the key facts and the basic framework for understanding economic growth. I think we do an especially good job explaining that the proximate causes of growth, increases in capital, labor, and technology must themselves be explained. Why do people save? Why do people invest? Why do people research and develop new ideas? It's these questions which connect macroeconomics to microeconomics and point to the fundamental importance of incentives and institutions.Also, the website that accompanies the book: http://bcs.worthpublishers.com/c...
What is a summary of the Marxist theory?
Really simple summary?Everything gets made using three “factors of production” : Land, Capital and Labor. If you try, you can fit everything into just those three factors. Land is all things present in nature. Labor is everything people do. Capital is what people save or make using labor applied to land that helps future production.Fish are part of Land. I can grab them with my hands doing labor. I can also expend labor on found resources and make fish nets or traps that increase my catch. The nets or traps are Capital.Civilizations start by some people controlling Land and through that dominating Capital and Labor. Aristocracies are based on the control of Land.Recently, by the end of the 18th century, things had started to change. Rather than all economic power being controlled by landed aristocracies, a new class of people had begun to emerge and promised to take control of the economy and society. These people controlled Capital and through this dominated both Land and Labor.Adam Smith and Ricardo analyzed this new class and the economy emerging around them. They noted the release of vast new productive power by an emphasis on division of labor, machinery and increasing productivity of labor. These are Capitalists and Marx’s great work was the analysis of the economic system they were building on the old world of Land holding aristocracies and peasants. (Das Kapital).Marx, coming later and seeing a lot of problems for workers noted a lot of instabilities in the new economy emerging.He concluded that the shift from Land (Aristocracy) to Capital (Bourgeoisie) wasn’t stable but merely ushered in a final transition from Capital to Labor (Proletariat).In a nutshell then, Marxism is the theory that power had shifted from control of Land to control of Capital and would finally shift to control of Labor. This final transition to control by the great mass of working people is Socialism.
Can you describe John Maynard Keynes's major economic philosophies?
His theory was to explain the great depression which has proved that the classical economists were wrong for many things. There are three points to mention: 1. the supply of labor has a positive slope, not vertical. The equilibrium in the short run might not be achieved, so that the unemployment is possible. 2. the demand for money can hinder the adjustment to the new equilibrium. 3. the income is not divided into spending and save. The loanable fund theory might not be true. The budget deficits and surpluses are also counted.
Oil / gas prices are micro or macro economics?
The different between micro and macroeconomics is that micro looks at how the individual market works, while the macro looks at how the global or national market works. If you are purely looking at oil/gas price changes and the factors that cause them to change, then you are looking at microeconomics. Even though the oil or gas could be from anywhere in the world, you are only looking at the oil/gas industry. I can understand why it could also relate to macroeconomics because some of the factors that affect prices changes in oil/gas is on a global scale. For example, one factor that changes oil prices is exchange rate between countries. Now that would be a macroeconomic theory affecting a microeconomics study. Inflation would be another. So when you do studies on this, be focused on what you are trying to find. If your goal is to study the oil/gas industry, then it is microeconomics. If you are studying the factors that change the oil/gas industry, then it is macroeconomics and microeconomics (because both have contributions). Hope this clears it up a bit.
Which statement best summarizes the invisible hand theorem?
Which statement best summarizes the invisible hand theorem? A. Cultural norms direct people's selfish desires (tempered by political and economic forces) to the common good. B. Markets direct people's selfish desires (tempered by political and social forces) to the common good. C. Social, political, and economic forces act against people's selfish desires to promote the common good. D. Government policies direct people's selfish desires (tempered by social and economic forces) to the common good.
What are the 3 stages of production in economics?
Stage OneStage one is the period of most growth in a company's production. In this period, each additional variable input will produce more products. This signifies an increasing marginal return; the investment on the variable input outweighs the cost of producing an additional product at an increasing rate. As an example, if one employee produces five cans by himself, two employees may produce 15 cans between the two of them. All three curves are increasing and positive in this stage.Stage TwoStage two is the period where marginal returns start to decrease. Each additional variable input will still produce additional units but at a decreasing rate. This is because of the law of diminishing returns: Output steadily decreases on each additional unit of variable input, holding all other inputs fixed. For example, if a previous employee added nine more cans to production, the next employee may only add eight more cans to production. The total product curve is still rising in this stage, while the average and marginal curves both start to drop.Stage ThreeIn stage three, marginal returns start to become negative. Adding more variable inputs becomes counterproductive; an additional source of labor will lessen overall production. For example, hiring an additional employee to produce cans will actually result in fewer cans produced overall. This may be due to factors such as labor capacity and efficiency limitations. In this stage, the total product curve starts to trend down, the average product curve continues its descent and the marginal curve becomes negative.To receive advices while signing up, use this FAQSSource: Three Stages of Production in Economics