3. The stages in history of economics.

The history of economic thought deals with different thinkers and theories in the subject that became political economy and economics from the ancient world to the present day. Economics was born in Greece. It’s divided into 4 stages:

1.Ancient science;

2.Middle ages;

3.Reformation;

4.Modern types.

First economic thoughts were known for the majority of ancient civilization. The term “economics” was invented by Xenophontes. Aristotle divided views into 2 points:

1.Economic (Production for own consumption);

2.Derematistics( Production for selling to get income).

St.Thomas Aquinos was the first who described economics in the middle ages. He considered economics from religion point of view.

Information was reflected not in mostly supplies included philosophy and science. After the enlightenment different philosophers and scientists were able to speak. The first scientific economic is called mercantilism.

The first scientific economic is called mercantilism. Mercantilist thought the only form at wealth is money. Mercantilism prohabited cutflow at money and post high import tax in order to expand the export and increase the treasure.

Economic liberalism is the ideological belief in organizing the economy on individualist lines, such that the greatest possible number of economic decisions are made by private individuals and not by collective institutions.

3. Demand and supply law, effects and exceptions.

Demand law- consumers buy more of a good when its price is lower and less when its price is higher.

Income effect - доход

Substitution effect - совмещение

Giffen good- is a good which occupies dominant positions in consumption structure.

Veblen effect- good which people buy from prestigious consumption.

Snob effect-когда люди смотря на высокую цену думают, что он товар зашибись крутой и тут же его покупают.

Factors shifting demand curve:

• Tastes and preferences

• Income

• Number of consumers(demand increases)

• Expectations (if people expect prices to rise, demand increases)

• Prices of other goods

  • neutral

  • substitus

  • complements

Supply law - quantities respond in the same direction as price changes.

Factors shifting supply curve:

• Expenses

• Taxes

• Technology

• Number of producers

• Prices of competitors’ goods

• Prices of joint production goods

3. Walrasian equilibrium, Cobweb theorem, and intermarket equilibrium.

Walrasian equilibrium stating that excessive demand or supply influence price and, thus, regulate the market Marshallian equilibrium stating that price dictates market regulation. (1 рыночное движение) (принцип теории общего равновесия).

(со слов Спартака надо начертить какую-то хрень: если цена выше-то спрос ниже, избыток-товара на рынке много, цена падает и траляля(с))

Cobweb theory is an economic model that explains why prices might be subject to periodic fluctuations in certain types of markets.

• Destroying(угол>90, колебания увеличиваются)

• Stabilizing(угол<90, колебания уменьшаются)

• Stability(угол=90б неизменны)

Все зависит именно от угла.

(паутинообразная модель, 2 рыночное движение).

Intermarket equilibrium-межрыночное равновесие.

imagine that country has only 2 markets:

automobile and construction.

if counstruction market suffers all the resources, that resources can be taken only from the automobile market.

короче говоря. в стране есть несколько рынков, один растет за счет другого, то есть если один рынок начал быстро развиваться, значит все ресурсы для этого были изъяты из второго и таким образом второй подыхает, но рано или поздно все становится наоборот.

(если один рынок переживает бум, то ресурсы перетекают на этот рынок, второй рынок находится в упадке.

кода рынок падает, предложение упало, по закону предложения цена падает и спрос увеличивается и поэтому ресурсы начинают перетекать обратно)