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In welfare economics, a utility–possibility frontier (or utility possibilities curve), is a widely used concept analogous to the better-known production–possibility frontier. The graph shows the maximum amount of one person's utility given each level of utility attained by all others in society. [ 1 ]
It combines aspects of the Harrod–Domar growth model with the Phillips curve to generate endogenous cycles in economic activity (output, unemployment and wages) unlike most modern macroeconomic models in which movements in economic aggregates are driven by exogenously assumed shocks. Since Goodwin's publication in 1967, the model has been ...
Also called resource cost advantage. The ability of a party (whether an individual, firm, or country) to produce a greater quantity of a good, product, or service than competitors using the same amount of resources. absorption The total demand for all final marketed goods and services by all economic agents resident in an economy, regardless of the origin of the goods and services themselves ...
Real business-cycle theory (RBC theory) is a class of new classical macroeconomics models in which business-cycle fluctuations are accounted for by real, in contrast to nominal, shocks. [1]
Transformation problem: The transformation problem is the problem specific to Marxist economics, and not to economics in general, of finding a general rule by which to transform the values of commodities based on socially necessary labour time into the competitive prices of the marketplace. The essential difficulty is how to reconcile profit in ...
Published at the same time, international trade, e-commerce, enterprise theory, property rights and contracts, urban economics, national economics, public economics, macroeconomics, and other fields of the latest research results, also shows it is widely used, and proves that the influence of inframarginal analysis to reduce labor cost and the ...
In economics and consumer theory, quasilinear utility functions are linear in one argument, generally the numeraire. Quasilinear preferences can be represented by the utility function u ( x 1 , x 2 , … , x n ) = x 1 + θ ( x 2 , … , x n ) {\displaystyle u(x_{1},x_{2},\ldots ,x_{n})=x_{1}+\theta (x_{2},\ldots ,x_{n})} where θ {\displaystyle ...
Demand-pull inflation occurs when aggregate demand in an economy is more than aggregate supply.It involves inflation rising as real gross domestic product rises and unemployment falls, as the economy moves along the Phillips curve.