- a rational individual maximises their pleasure to achieve happiness
- maximisation of pleasure is assumed to be achieved through consumption of goods.
- a util is assumed to be in a constant ratio to units of consumption.
- the util ratio is assumed to apply to all goods.
- It is assumed that we would always want more of a good, but that the amount satisfaction we get from each new unit of consumption produces less utility.
- all consumers spend all their income.
- price changes do not affect income.
Deregulation, debt, corruption, recession, and the Second Great Depression. Something must be done!
Showing posts with label Assumptions. Show all posts
Showing posts with label Assumptions. Show all posts
15 Aug 2012
Debunking Economics III: Assumptions
I wanted to present as a list all of the assumptions which I have noted in economics. I'll update as I go.
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