Imposition of behavior assumptions in analytical framework, Microeconomics

Illustrate about the imposition of behavior assumptions in analytical frameworks of modern economics?

Imposition of Behavior Assumptions:

The second one step for studying an economic issue is to create assumptions onto individuals’ behavior. Making suitable assumptions is of basic importance for obtaining an important economic theory or assessment. An important assumption modern economics makes regarding an individual’s behavior is which an individual is self-interested. It is a main dissimilarity between individuals and the other subjects-topics. The self-interested behavior assumptions are not merely reasonable and realistic, but also have a minimum risk. Still this assumption is not appropriate to an economic environment; this does not cause a big trouble to the economy even though it is applied to the economy. The rule of this game designed for self-interested individuals is probable also appropriate for altruists, but the reverse is probably not true.

Posted Date: 9/7/2013 5:37:17 AM | Location : United States







Related Discussions:- Imposition of behavior assumptions in analytical framework, Assignment Help, Ask Question on Imposition of behavior assumptions in analytical framework, Get Answer, Expert's Help, Imposition of behavior assumptions in analytical framework Discussions

Write discussion on Imposition of behavior assumptions in analytical framework
Your posts are moderated
Related Questions
Measuring Cost: Which Costs Matter? Accounting Cost versus Economic Cost - Accounting Cost Actual expenses and adding the depreciation charges for the capital equip

sources of oligopory

Use of Income elasticity of demand: Income elasticity of demand on the other hand, has the following uses (i) Income elasticity of demand shows how the pattern of consumer de

Draw a diagram to show the type of bond between two flourine atom

Explain why each of the following factors may influence the own price elasticity of demand for a commodity. The narrowness of the definition of the commodity

#question.PROPERTIES OF INDIFFERENCE CURVES WITH TABLE AND DIAGRAM.

explain consumer equilibrium diagrammatically as well mathematically by using necessary and sufficient conditions

Special Drawing Rights: The late 1960s witnessed that the growth in world resources did not keep pace with the growth in international trade. The slackness in the growth of re

What was the price index for 2008, 2009 and 2010?

what is the theory of second best? prove the theorem with the help of a diagram.