Economic efficiency

that the best economic benefit for all can usually be accomplished when individuals act in their own self-interest. In a market economy, individuals own most of the resources available, labor, land and capital, and use voluntary decisions, made in self-interest, to control the marketplace. In this type of system, the government plays a small role and the economy is shaped by two forces, self-interest and competition. Self-interest is arguably the single largest motivator of economic activity. In…

between the abundance natural resources and economic growth. Gelb’s (1988) cross-country economic analysis of oil exporting countries (Algeria, Indonesia, Nigeria, Venezuela, Ecuador and Trinidad and Tobago) was one of the early studies on the negative connection between natural resources wealth and economic development. The studies revealed that windfalls from natural resources during the booms periods of 1974 – 1978 and 1979 – 1981 were harmful for economic development. Natural resource like…

technological achievements of the Aztec involved increases in the extent, efficiency, and overall productivity of natural resources for agricultural purposes. During the period that the Aztec empire occupied the highlands of central Mexico, from early 14th through the early 16th centuries CE, its rulers had to figure out how to feed their growing and developing population. The act of agricultural intensification became a crucial economic component to meet these demands. This has been defined by…

with autarky system, and will increase in consumption of both commodities locally. These gains are described as improvements in the efficiency of production and consumption. Moreover Free trade increases the efficiency of aggregate world production, as more of commodities are produced with the same number of workers. Free trade also raises aggregate consumption efficiency, which means that consumers have a more set of choices and prices available to them (Suranovic, 2012,…

In this essay, I define positive propositions, normative propositions and value judgements in order to highlight their differences and identify their connection to welfare economics. I demonstrate their relationship in detail using concepts like cost-benefit analysis and paternalism with two relevant policy examples: raising the minimum wage and imposing taxes on fattening foods. By the end, I attempt to show both sides of the arguments “for” and “against” these policies in the hopes of…

less administration work, but also has no restrictions with being used alongside other drugs. Because Vblock and Nobarf are virtually identical when it comes to reducing nausea, the economic value of Vblock comes from the increase in time efficiency. Despite that, I would not charge a price equivalent to the economic value (to patients) because 1. it does not effectively capture the psychological values of the new drug (for instance, the price of the recovery room at $150 does not account for…

3. Extensions & applications 3.1.1 Schumpeter ’s contribution on capitalism and decay of the capitalism Schumpeter explained the chief characteristic of capitalism was the conduct of economic actors. The economic actors implemented new combinations. The banks provided financing channel to the entrepreneurs. Economic performance could be evaluated by total output within a year. The role of entrepreneurship was to pursue long-lasting increase of total output. If the society did not accept the…

Factors of Economic Development: Comparing India and China In today’s interconnected global economy, China and India are continuing to emerge as leading factors catalyzing the growth of globalization and economic wealth. An overabundance of labor and an increasingly educated population, both Asian countries have transformed their nations into highly influential economic powerhouses. As of 2014, China and India combined for over two-and-a-half billion, 36.737507%, of the seven-plus billion…

migration, educational and political systems, economic development, finances, technology and physical health of societies worldwide. The impact of globalization is complex, It has different implications on in each and every one of these areas. Globalization has been driven by policies that have opened local and international economies. Since the Second World War (Smallman, S., & Brown, K. (2011).), and in recent years, governments have adopted free trade economic systems, thus increasing their…

(Brinkerhoff et al., 2014). Within the economy, there are two modern types of economic systems: capitalism and socialism. Although capitalism and socialism are both modern economic systems, there are similarities and differences between these two systems. According to Brinkerhoff et al. (2014), capitalism is a market-based economic system based on competition that consists of buyers and sellers. In a capitalist economic system, most wealth is considered private property and use…