Explain key assumptions and desired properties, Microeconomics

Assignment Help:

Explain the key assumptions and desired properties commonly used economics.

Economists generally make all or some of the given key assumptions and a condition while they study economic problems as follows:

a. Individuals are restricted rational: self-interested behavior assumption;

b. Scarcity of resources: individuals tackle scarce resources;

c. Information regarding individual’s economic characteristics and actions is unfinished or asymmetric to a decision marker. As like a decentralized decision making is wanted.

d. Economic freedom: It is voluntary cooperation and voluntary exchange;

e. Incentive compatibility of parties: there the system or economic mechanism must solve the problem of interest conflicts in between individuals or economic units;

f. Well-described property rights;

g. Equity into opportunity;

h. Allocate efficiency of resources;

Relaxing any of such assumptions may result in various conclusions.


Related Discussions:- Explain key assumptions and desired properties

Which of the following statements is true?, Nonmetals tend to gain electron...

Nonmetals tend to gain electrons. A-Metals tend to lose electrons. B-Atoms have the natural tendency to C-fill their outermost shells. All of the above. D-

Determine the is this agent maximizing is utility, 1. Suppose the wage rate...

1. Suppose the wage rate is w = 1. An agent is working 6 hours per day and consumes 5 units of goods per day. Suppose that the agent claims to be indifferent between his current

Production possibility curve, draw a production possibility frontier task u...

draw a production possibility frontier task using the graph and value and identity the pareto efficent and inefficient point and the marginal oppotunity cost of x for each point of

Point elasticity, Point Elasticity: Point elasticity is brought in use ...

Point Elasticity: Point elasticity is brought in use when the change in price is quite small, which means. The two points between which elasticity is being measured or calculat

How a country exchange rate influence balance of payment, How might a count...

How might a country exchange rate influence the balance of payments? Definition of the exchange rate; price of domestic currency in another (basket of) currency (currencies). C

Oligopoly, cartels model of collusive oligopoly

cartels model of collusive oligopoly

Will governments follow good policies, Will Governments Follow Good Policie...

Will Governments Follow Good Policies? That governments can assist in development and growth doesn't mean that governments will. The broad experience of growth in developing ec

HCA586, how do cooperative and noncooperative games differ

how do cooperative and noncooperative games differ

Demand of pepsi cola goes up, If the quantity demanded of Pepsi Cola goes u...

If the quantity demanded of Pepsi Cola goes up, and its supply enhances what will occur in the market for Pepsi?

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd