Download Debunking Economics: The Naked Emperor of the Social by Steve Keen PDF

By Steve Keen

What's the rating card for economics at the beginning of the recent millennium? whereas there are various diverse colleges of financial notion, it's the neo-classical tuition, with its alleged knowing and simplistic advocacy of the marketplace, that has turn into equated within the public brain with economics. This ebook indicates that just about each point of traditional neo-classical economics' pondering is intellectually unsound. Steve willing attracts on a magnificent array of complicated serious pondering. He constitutes a profound critique of the primary techniques, theories, and methodologies of the mainstream self-discipline. willing increases grave doubts approximately economics' pretensions to demonstrated medical prestige and its reliability as a consultant to figuring out the genuine global of financial lifestyles and its policy-making.

Show description

Read Online or Download Debunking Economics: The Naked Emperor of the Social Sciences PDF

Best economic policy & development books

The Plot Against Social Security: How the Bush Plan Is Endangering Our Financial Future

Relentless and ominous, the drumbeat echoes around the land: Social safeguard is at the verge of financial ruin. The caution has been repeated so frequently that it has turn into a dark article of religion for the hundreds of thousands of american citizens who pay Social safeguard taxes and count on to gather advantages sometime. however it is flatly unfaithful.

Extra resources for Debunking Economics: The Naked Emperor of the Social Sciences

Example text

The average fixed costs of output at this point are enormous – $250,000 divided by just 52, or $4807. The average total cost is $251,000 divided by 52, or $4827 per unit – which implies a loss of $4823 per unit sold, if this were the chosen level of production. 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 1 1 1 1 1 1 1 1 1 1 1 1 4 4 3 2 2 2 2 2 2 2 2 2 2 2 276 131111 276000 526000 277 131885 277000 527000 400 233333 400000 650000 500 316667 500000 750000 700 443333 700000 950000 725 452370 725000 975000 730 453938 730000 980000 735 455424 735000 985000 740 456827 740000 990000 745 458144 745000 995000 746 458397 746000 996000 747 458647 747000 997000 748 458893 748000 998000 800 466667 800000 1050000 Table 1: Input and output data for a hypothetical firm At this stage, production benefits from economies of scale.

In fact, according to economic theory, each firm would want to produce an infinite amount. Figure 8: Economic theory doesn’t work if Sraffa is right This is so patently impossible that, when told of Sraffa’s critique, many economists simply dismiss it out of hand: if Sraffa was right, then why don’t firms produce an infinite amount of goods? Since they don’t, Sraffa must be wrong. ’. Sraffa instead put the opposite case: sure, the economic model of production works in theory, if you accept its assumptions.

The slope of the revenue curve is called marginal revenue, while the slope of the cost curve is called marginal cost. The point where the two marginal curves intersect corresponds to the point at which the distance between the total revenue and total cost curves is greatest. We have arrived at the economic Nirvana: a perfectly competitive firm (the concept of ‘perfect competition’ is discussed in detail Chapter 4) producing a quantity at which marginal cost equals both marginal revenue and price.

Download PDF sample

Rated 4.13 of 5 – based on 41 votes