(X) Economics Theory Development
October16, 1977-2003

Themes and questions of Today's mind

  • How rapidly a business expands?
  • How aggressively the business owners seek out expansion
  • How fast the rate of GDP growth?
  • The right product or service at the right price where it's needed when it's needed at a profit to the company.
  • An equal and justic barter system.
  • To quantify the description of consumer behavior.
  • To establish individul demand curve for particular commodities.
  • Business Cycle; the process of economic growth/business growth.
  • The determinants of the level of economic/business activity.
  • The times determine the very asked questions.
  • Utility-- pleasure or satisfaction, In fact, utility is not measurable, We also can not make interpersonal utility comparisons.
  • Consumer preferencies and tasts can be presented through indifference curves map for each individual.
  • Indifference curve technique dates back to the 1881's by Francis Y Edgeworth, developed and integrated in 1930, it without further development has since become a standared and necessary part of the Economist's Analytical Equipment.
  • Acceleration; a change in the trend, also including a negative change (deceleration). Although there have been attempts to develop quantitative models of acceleraion for forecasting in the social and managmen sciences, these have not been successful. Of course, if one has good knowledge about its cause and its timing, acceleration can be critical part of forecast. Consider this when a businessman and you need to predict when to sell your product at very competetive price.
  • Data day-to-day basis, this is the way human society ought to be organized.
  • The short-run Phillips Curve, an essentially demand side phenomenon, fails to take into account shifts of Aggregate Supply. It cannot serve as an adequate basis for macropolicy. In spite of this fact, it appears that central banks around the world continue to base interest rate targeting upon some concept of a Phillips Curve.
  • What are the real prices?
  • The supply and demand model is the workhorse of economics.
  • the law of supply is depicted by an upward-sloping curve while the law of demand is presented by a downward-sloping curve.
  • The equilibrium price is established at the point where the two curves intersect. At this point, the quantity supplied and demanded is equal. At the equilibrium price, the market is said to be "cleared." The laws of supply and demand are impeachable true. The problem comes if we mistake the graphs for the real world of uncertainty, speculation, purposeful behavior, and change.
  • Despite its great appeal because of its simplicity, the supply-demand graphic as employed by mainstream economics is a tool that is detached from the facts of reality. The real-world economy is far too complex to be faithfully rendered on simple graphs that take no account of uncertainty, entrepreneurial speculation, and the ceaseless change of the market economy. By no means is this framework harmless, because government and the central bank decision-makers make use of this tool in forming various policies. This is why they are continually surprised when the real economy performs in a manner different from what their graphical analysis would seem to predict.
  • The law of supply and demand as presented by mainstream economics doesn't originate from the facts of reality but rather from the imaginary construction of economists. In short, none of the figures that underpin the supply and demand curves have originated from the real world; they are purely conjectural. The framework of supply-demand curves rests on the assumptions of unchanged consumer preferences and income and unchanged prices of other goods. In reality, however, consumer preferences are not frozen, and other things do not remain constant. Obviously, then, no one could have possibly observed these curves. According to Mises, "it is important to realize that we do not have any knowledge or experience concerning the shape of such curves."
  • Economists give prices a special place in this analysis. The DEMAND CURVE is defined as the relationship between the price of the good and the amount or quantity the consumer is willing and able to purchase in a specified time period, given constant levels of the other determinants--tastes, income, prices of related goods, expectations, and number of buyers.

Consider the following curve:

  • © Ma'in Sinan who adopt a successfuly developed Auto-Engineering Model/Process to be adapted to all Business Fields: Economics, Marketing, Management, Finance, Operations.

  • The model © Ma'in Sinan is a patern match curve.

  • The process © Ma'in Sinan is a sum of functions, operations and transformations that enables individuals and organizations to quantify the new input factors (Energy, Effort, Money, Time, Change, and Rate of Change) in order to achieve their goals through efficient acquisition and utilization of resources.

  • © Definitions and assumptions of New Political Economic Theory.

  • Every consumer is a producer as will.
  • Energy as an INPUT, match the supply curve
  • Effort as an OUTPUT, match the demand curve
  • Value($) will be represented on Y axis.
  • Time will be represented on X axis.
  • Change(dx/dt) will be represented on X axis.
  • Rate of change will be represented on X axis.