production, theory of

Analysis concerned with transforming factor inputs into outputs according to a production function. Production is dependent on technology, the mix of factor inputs, factor prices and marginal productivity. The Modern Cambridge School envisages an economic model which encompasses sociological, historical and psychological factors as well as pure economic ones. It attacks neo-classical economics for

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profits, theories of

The early classical economists believed that profits would eventually decline. The Scottish economist Adam Smith (1723-1790) viewed the growth rate of capital accumulation (which took place at a rate higher than total output) as the cause. The English economist David Ricardo (1772-1823) argued that a decline in the general rate of profit was caused by the diminishing marginal

public choice

Application of economic models to politics. Political and governmental decisions can be understood as rational choices of persons and institutions seeking to maximize their self-interest. Source: Patrick Dunleavy, Democracy, Bureaucracy and Public Choice (Brighton, 1991) Background and development An early precursor of modern public choice theory was the work of Swedish economist Knut Wicksell (1896),[7] which treated

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second best, theory of

Proposed by Canadian economist RICHARD LIPSEY (1928-1980) and Australian economist KELVIN LANCASTER (1924-1999), theory of second best assumes that if one of the conditions necessary to achieve Pareto-optimality is missing then the ‘second best’ position can only be reached by departing from all the other Paretian conditions. Also see: pareto efficiency Source: R G Lipsey and K

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St Petersburg paradox

The paradox A casino offers a game of chance for a single player in which a fair coin is tossed at each stage. The initial stake begins at 2 dollars and is doubled every time heads appears. The first time tails appears, the game ends and the player wins whatever is in the pot. Thus the player wins

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Thatcherism

Thatcherism is the name given to the laissez-faire policy of Margaret Thatcher (1925-), British prime minister from 1979 to 1990. An advocate of supply-side economics, among Thatcher’s policies were: reductions in tax; manipulation of the money supply to reduce inflation; privatization of public industry; reduction of trade union power; reduction of government’s role in the economy; and encouragement of

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variable proportions, law of

In chemistry, the law of definite proportion, sometimes called Proust’s law, or law of constant composition states that a given chemical compound always contains its component elements in fixed ratio (by mass) and does not depend on its source and method of preparation. For example, oxygen makes up about 8/9 of the mass of any sample of pure water, while hydrogen makes up the remaining 1/9 of the mass: the

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anarcho-syndicalism

Anarcho-syndicalism[1] is a political philosophy and anarchist school of thought that views revolutionary industrial unionism or syndicalism as a method for workers in capitalist society to gain control of an economy and thus control influence in broader society. The end goal of syndicalism is to abolish the wage system, regarding it as wage slavery. Anarcho-syndicalist theory therefore generally focuses on the labour movement.[2] The basic principles of anarcho-syndicalism

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collectivism

Theory of social and political organization. The major problems facing individuals are ones which they share in common with others. The solutions, correspondingly, are most effective when pursued in common or collectively. The provision of welfare and the cultivation of the economy, in particular, are best conducted through collective rather than individual action. The

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conflict theory

Conflict theories are perspectives in sociology and social psychology that emphasize a materialist interpretation of history, dialectical method of analysis, a critical stance toward existing social arrangements, and political program of revolution or, at least, reform. Conflict theories draw attention to power differentials, such as class conflict, and generally contrast historically dominant ideologies. It is therefore a macro-level analysis of society. Karl Marx is regarded as the

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systems theory

Systems theory is the interdisciplinary study of systems. A system is a cohesive group of interrelated and interdependent parts which can be natural or human-made. Every system is bounded by space and time, influenced by its environment, defined by its structure and purpose, and expressed through its functioning. A system may be more than the sum of its parts if it

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Marxism

Marxism is a method of socioeconomic analysis that uses a materialist interpretation of historical development, better known as historical materialism, to understand class relations and social conflict as well as a dialectical perspective to view social transformation. It originates from the works of 19th-century German philosophers Karl Marx and Friedrich Engels. As Marxism has developed over time into various branches and schools of thought, there is currently no single definitive Marxist theory.[1]

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power

Power is an American crime drama television series created and produced by Courtney A. Kemp in collaboration with Curtis “50 Cent” Jackson. It aired on the Starz network from June 7, 2014 to February 9, 2020. Upon release, Power gained positive reviews for its pacing, atmosphere, and acting.[1][2] It is one of Starz’s most highly rated shows and one of cable’s most watched shows.[3][4] Prior to the

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public interest

Overview Economist Lok Sang Ho in his Public Policy and the Public Interest[2] argues that the public interest must be assessed impartially and, therefore, defines the public interest as the “ex ante welfare of the representative individual.” [3] Under a thought experiment, by assuming that there is an equal chance for one to be anyone in society and, thus, could

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Aristotelianism

Aristotelianism (/ˌærɪstəˈtiːliənɪzəm/ ARR-i-stə-TEE-lee-ə-niz-əm) is a tradition of philosophy that takes its defining inspiration from the work of Aristotle. Aristotle was a prolific writer whose works cover many subjects including physics, biology, metaphysics, logic, ethics, aesthetics, poetry, theatre, music, rhetoric, psychology, linguistics, economics, politics, and government. Any school of thought that takes one of Aristotle’s distinctive positions as its starting point can be considered “Aristotelian” in the widest sense. This means that different Aristotelian theories (e.g. in

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atomic uniformity, principle of

Principle used by the English economist John Maynard Keynes (1883-1946) in trying to justify induction. It said that, if induction is to work, a complex change must be resolvable into a set of component changes each of which is separately attributable to some distinct feature of the preceding state of affairs. Also see: INDUCTIVE PRINCIPLE Source:

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bivalence, law or principle of

Theory that every proposition is either true or false. Possible objections are of two kinds. First, can we decide what counts as a proposition in the relevant sense? Second, might not the principle fail for some presumably genuine propositions; for example, ‘Jones was brave’ (where Jones died peacefully after a life entirely devoid of

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charity, principle of

Principle named by Neil L. Wilson – in Review of Metaphysics (1958-59), page 532 – that when interpreting another speaker, especially of an unknown language, we should make those assumptions about his intelligence, knowledge, sense of relevance and so on, that will make most of what he says come out true. Also see: principle of

continuity, law or principle of

Principle of Gottfried Wilhelm Leibniz (1646-1716) which can be roughly rendered as saying that when the difference between two causes is diminished indefinitely, so is the difference between their effects (though Leibniz would not put it in these causal terms, since for him God is the only true cause). ‘Nature makes no leaps’, as he says

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contradiction, law of

Also called the law (or principle) of non-contradiction. One of the traditional three laws of thought (the other two being the laws of identity and of excluded middle). Variously formulated as saying that no proposition can be both true and not true; or that nothing can be – without qualification – the case and not the case at the

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