Economic Theory
Since the Great Depression, many Keynesian economists have been arguing that their basic approach is the best way to deal with issues that could have a long-term impact on the economy. At the heart of this basic philosophy, is the belief that when spending in the private sector is stagnant, the public segment can be able to deal with these challenges. The reason why, is because the government could engage in actions such as favorable monetary and fiscal policy. If this kind of approach is taken, it will help to provide additional demand. Once this occurs, it means that they can begin to stabilize the economy and prevent negative calamities from taking place. This is significant because, these basic ideas have often been used by economists throughout the decades to illustrate how this is one of the major tools that can be utilized to deal with a host….

Economics
One of the most fascinating aspects of Chapter 4 is how the Marxists theories provide insights into how tightly economic, geopolitical and societal forces interact to redefine the foundational definition of value in a society. What's most fascinating about Marxism relative to capitalism is that fact that the former tends to see economic ecosystems as manageable and even predictable. Capitalism shows that economic ecosystems, while defined through constructs and frameworks at the macro- and micro-level, is best managed with a laissez-faire based approach to orchestrating commerce. To the Marxist, laissez-faire economic systems seem fertile for exploitation and the monopolistic aggregation of entire industries. To the capitalist, Marist economies lack the freedom to allow resources to flow to and fund innovation and needed products that a turbulently changing market require. The dichotomy of egalitarianism relative to free market dynamics is a fascinating one, and it's clear that the dividing lines….

Criminology Theory: Economic Theory of CriminologyCriminology and the thought processes of criminals have long been a point of contention for society. Here, the need to identify why and how criminal behave the way they do ultimately provides a means of maintaining the integrity of society. In addition, the need for continual research in the field is required as criminals continue to develop new and unique methods in which to disrupt the underlying values and principles of society. By continually learning about criminal behavior, law enforcement in conjunction with governments and communities can better protect law abiding citizens while also mitigating unlawful behavior. Once such theory that contributes to this is that of the economic theory of criminology. This theory was originally formalized by Gary Becker in 1968 and has been adapted over the year by many criminologists around the world. The theory states that criminals, from an economic perspective are….

ffective measurement of economic performance and when the government should stay (or not stay) out of things is discussed at the end of the chapter.
Chapter 16 Web Activities

1. conomist Russ Roberts and filmmaker John Papola have created a video of a rap-off between economists John Maynard Keynes and F.A. Hayek. View the video at http://www.econstories.tv/. Read the lyrics on the same page, and then read the line-by-line discussion of the lyrics at the Daily Kos website, accessible at http://www.dailykos.com/story/2010/3/1/8929/21462.

a. Summarize the basic arguments of Keynes.

Keyne's viewpoint on macroeconomic theory is government intervention is the solution, and not the problem, and that it is possible to prevent the massive swings in the economy that are currently the norm with massive swings back and forth from boom and bust rather than staying within a happy medium between the two. Any Keynesian would point to the Great Depression and how the absence….

At which point, they would consume even more of the different services that are being provided. This would have an impact on spending, as consumers would use the added savings to purchase additional services from the company. This shows that the character of human wants requires giving customers greater value. Once this takes place, is when they will begin to purchase other products. As a result, the assumptions about the character of human wants are: based upon financial benefits and added value that is provided. These elements are important, because they are the most significant factors that will shape consumer buying decisions. ("A Closer Look at the Demand Curve," 109 -- 116)
What this shows about consumer wants for various items, is that they are constantly changing and that any kind purchasing decisions are based upon two factors (income and value). Where, consumers will seek out those products that can….

hen there is no obvious solution to a particular problem, the recommended course was to extend the Neoclassical paradigm by incorporating new concepts into it that would make the subject matter amenable to economic analysis" ("The Chicago School," 2006, the New School) Recessions are short-term pain that can cause long-term gain, provided people 'wait them out' and provided the government has a minimal role in the economy, except to stabilize the monetary supply.
The Chicago School is based in a belief that people are rational beings and are very good at working out what is in their best long-term interest, unlike Keynesian theory that proposes that short-term personal decisions like hoarding may seem rational but could actually be irrational in the 'macro' scheme of things. (Klemens, 2003: 2). The Chicago School economists were later accused of economic imperialism in their advice to the orld Bank and International Monetary Fund. For….

Even when forced to rework his model to allow for some private investment, he argued that it wasn't as efficient as government spending because private investors would be less likely to undertake/overpay for unnecessary works in hard economic times" (Beattie 2010). For the world to extricate itself from the Great Depression, said Keynes, the government must intervene in the market.
Keynes' rationale is one reason that the current administration's stimulus package in response to the recent economic downturn has been termed Keynesian in nature. Keynes advocated spending money and increasing the deficit during recessions, and avoiding deficits during expansionary periods to stem inflation. Because of his fear of a 'hoarding' effect Keynes also tended to view a higher level of overall employment as a greater necessity than classical economists. Due to Keynes' influence, the federal government increased in size, nearly doubling within a few scant years: "during the 1920s, there….

The competitive equilibrium

The competitive general equilibrium tries to give an understanding of the whole economy using a "bottom-up" approach, starting with individual markets and agents, as a microeconomic approach. The rational expectations theory is based off this microeconomic approach, where it assumes that each individual agent is capable of quickly adapting to market changes and solving for the competitive equilibrium. This bottom-up approach and the concept of quick adaptation have been the source of much criticism about the rational expectations theory.

II. Flaws

Application of rational expectation to aggregate behavior

The main idea behind the rational expectations hypothesis is to consistently extend the principle of individual rationality from the problem of the allocation of resources.

The problem is the hypothesis's application to aggregate behavior. Even if all individual agents have rational expectations, the representative corporation/household/industry describing these behavior may not collectively make efficient use of all given information. Hence, in the aggregate, agents may….

Supply and Demand Economic Theory
Discuss supply and demand economic theory as it applies to costs for diagnosis and treatment of obesity-related disease.

Healthcare services for obesity-related illnesses have a 'demand curve', just like other commercial services and goods; this demand curve slopes downwards. The same demand law that works for entertainment, clothing, automobiles, and other services and goods also applies here; movements along this demand curve take place with respect to consumer responses to price changes in obesity-related care services. It is assumed that healthcare, which includes doctor visits, hospital bills, medication, and other health services, are measurable in healthcare units (Bovbjerg, Dorn, Hadley, Holahan and Miller, 2006).

The method of healthcare financing complicates demand curve analysis for healthcare related to obesity. Nearly 80% of healthcare linked to obesity is funded by third-party financiers, which include government initiatives and private insurance firms (e.g. Medicaid and Medicare). While movements are caused along the….

Anarchy
The debate that summarizes mankind involves determining which particular means of existence is best. Social, political and economic constructs have been developed and implemented throughout the last thousand years. Throughout this time, different forms of government and social organization arose out of idealistic thought and well reasoned application of natural and human laws. Today, this potential has been realized in our current forms of society. The estern world lives in a democratic, or so it seems, state of being. Is this best? hat is the best? Is there even a best way to go about doing this?

The validity of any proposed social, economic or political theory is required in order for a collective group of people to move forward and adopt the principles that they suggest. Anarchy and anarchism are terms that are gaining relative popularity in today's hectic and turbulent world. American interests are very wide and deep and….

He would be faced with deciding whether he must spend all his available resources on goods or services, or whether he must save some of his income so that he would be able to finance some of his needs of his future. When he is taken as a labor resource, he must make the decision whether he must use his time in working for his pay, or whether he must spend it on sleeping and other leisure time activities. ("Decision making using marginal analysis," n. d.)
Similarly, when he is a labor resource, he must decide how much of his time he must spend on education, so that he may be able to maximize his life earnings. On the other hand, if he were an entrepreneur, then he must make the decision on how many people he must hire, or how much he must spend on acquiring a new product….

Both Keynes and Kalecki use Marx's theories as a starting point but quickly moved into new ways of thinking, particularly with regard to effective demand being oriented toward the demand-side. Marx had remained rooted in supply-side demand function, rejecting Say's Law only to note that demand did not necessarily meet supply.
orks Cited:

Marx, K. (1867). Das kapital: A critique of political economy.

Mandel, E. (1995). Marx's theory of crises. International Viewpoint. Retrieved April 24, 2010 from http://www.internationalviewpoint.org/spip.php?article289

Argitis, G. (2003). Finance, instability and economic crisis: The Marx, Keynes and Minsky problems in contemporary capitalism. University of Crete working paper no. 0307.

Green, F. (1991). Marx, Malthus and wages: A comment on Cotrell and Darity. History of Political Economy. Vol. 23 (1) 95-100.

Magdoff, F. & Magdoff, H. (2004). Disposable workers: Todays' reserve army of labor. CBS Marketwatch. Retrieved April 24, 2010 from http://findarticles.com/p/articles/mi_m1132/is_11_55/ai_n6137106/

Sebastiani, M. (1989). Kalecki and Marx on effective demand. Atlantic Economic Journal.….

Marxian Economics
Karl Marx was one of the most popular and prominent economists the society has ever produced. Born in 1818 in Prussia, Marx would come to activate in fields such as sociology, economy, history or journalism. In his economic activity, he uncovered a series of economic principles regarding the functioning of the society and the economy in the context of capitalism, commonly integrated under the generic umbrella of Marxism. The Marxian theories draw from the Marxist ideology, yet they are considered ideologically independent (oemer, 2002).

The Marxian economic theories oppose the previous theories of Adam Smith, who relied of productivity and wages; Marx, on the other hand, promoted the role of labor to attaining economic gains. Marx contends that the specialization of the labor force leads to a decrease in the wages and that ultimate value of the goods and services is not able to reflect the value of the work….

Economics
There are a number of different metrics that can help to measure the health of an economy. The GDP is one of those numbers, and can be obtained from the Bureau of Economic Analysis. Following a decline of 2.6% in 2009, the GDP grew in 2010 by 2.9%. GDP rates fluctuated by quarter, with a low of 1.7% in Q2 following by escalating growth in the last two quarters. This represents a slow recovery from the steep declines of 2008-2009. Another measure of economic health is unemployment. The current unemployment rate from the Bureau of Labor Statistics is 9.0%, a decline of 0.4 percentage points from December. This rate is historically high, it is lower than at any point in the past year, again showing a sign of slow recovery. A third measure of economic health can be found in the inflation rate. The best measure of inflation is core….

Unfortunately most growth oriented economic policies such as "supply-side" economic policies tend to exacerbate inequality. A greater role of the government in the economy such as increased taxation on the rich can reduce inequality. Inflation and unemployment are usually inversely proportional in most economies, i.e., increase of money supply through deficit financing reduces unemployment but increases inflation while tight monetary policies reduce inflation but increase unemployment. According to a number of analysts, a major cause of terrorism in the world is an acute sense of deprivation among a large section of the population. Economic measures can, arguably prove more effective in rooting out terrorism than military action.
Part C-Theory

What, How and for Whom to Produce:

In 'free market economies' decentralized decision making by individuals and firms based on consumers' desires (which determine the price of goods) and the profit motive determine what goods are produced and in what quantities. For example,….