Which economic theory do you agree with and why?? Give some clear details and examples.
Which economic theory do you totally disagree with and why?? Give some clear details and examples for this as well.
Wednesday, October 28, 2009
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The economic theory that i agree with most is the Marginalist. This thoery states that the higher the cost of production the higher the price to purchase the product. It also says that the higher consumer satisfaction the higher the demand for the product.
ReplyDeleteThe economic thoery that i disagree with is the classical school. This theory says that land, labor, and capitol are the three factors of production and the major contributors to a nations wealth.
I do not completely agree or disagree with any of the economic ideas. I believe in certain parts of each of them. For example, I don't agree with the fact that a nations wealth is based on how much gold and silver it possesses, I think that a nations wealth should be based on the goods it produces and quality of those goods, which thus decides how much of those goods are sold. But at the same I time I do not believe agriculture is the sole source of wealth in the economy, like the Physiocrats did. Agriculture plays an important role in society but so does industry. I do not oppose trade, I think it is important to not only 1- obtain goods and recources that of which we cannot supply within our own country- and 2- keep the alliances and relationships between different countries open.
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