Essays on Branches of Economics
· Constrained Preferences When someone acts rationally, they are thinking clearly and have made decisions that have no doubts. A person who thinks rationally makes informed decisions. In economics, rationality refers to the choices one makes in the state of scarcity. Most decisions are made because customers can afford them and there is need to...
Introduction Proposed more than sixty years ago, the Solow Growth Model still constitutes a solid theoretical base for economic growth discussions. Solow’s capital accumulation-based model has been augmented together with other factors of productivity by several economists in the last fifty years. In line with that, Mankiw, Romer, and Weil (MRW) constructed their growth model...
Introduction Macroeconomics is the study of the economy as a whole, and the variables that control the macro-economy (Chapter 10 Macroeconomic Variables, n.d.). Macroeconomics can be classified as a public good, as it has the unique characteristic of being non-divisible and nonexclusive, meaning it can be shared with all in order to be enjoyed (Chapter...