Economics New Classical Versus Neoclassical Frameworks [Paperback]

This innovative text ushers in a new way of examining basic economic issues. It teaches economics from a different standpoint, based on specialization and the division of labor. Resource allocation for a given level of division of labor is shown as not the only determination for demand and supply. Levels of division of labor are shown as a major factors as well.Part I: Economic Environment: Introduction:.

1. What is Economics?.

Analytical Framework of Economics.

Neoclassical Economics vs. New Classical Economics.

Structure of the Text and Different Ways to Use it.

2. Preference and Utility Function.

Scientific Approach to Studies of Human Behavior.

Preference and Utility Function.

Convex Preference Relation, Quasi-concave Utility Function, Diminishing Marginal Rates of Substitution, and Desire for Diverse Consumption.

Ordinal vs. Cardinal Theory of Utility and Diminishing Marginal Rate of Substitution vs. Diminishing Marginal Utility.

3. Production Conditions.

Neoclassical Framework vs. New Classical Framework.

Neoclassical Environment of Production.

New Classical Production Environment.

Endogenous cum Exogenous Comparative Advantage.

Part II: Neoclassical Framework: .

4. Neoclassical Decision Problems.

Budget Constraint and Dichotomy Between Pure Consumers and Firms.

A Pure Consumer's Constrained Utility Maximization Problem.

Comparative Statistics of the Pure Consumer's Utility Maximization Problem.

A Pure Consumer's Expenditure Minimization Problem.

Recovering Utility Function from a Demand System.

Revealed Preference.