So what is an economic system? A system in general means a complex and interconnected set of some elements. And although economists do not argue with this, their ideas about what an economic system is are far from unambiguous. There are several approaches to this problem. One of them is called “technological”. With this approach, […]
Tag: Order
Curves of indifference. Solving the problem of the optimal choice of the consumer
The basis for the study of personal consumption (individual consumers and households) are indifference curves. The indifference curve is a line, each point of which represents such a combination of two goods that the consumer does not care which of them to choose. Indifference curves graphically reflect the consumer’s system of preferences. For the convenience […]
Preference relation and utility function
Unlike the previous one, the second approach does not require measuring utility in any quantity. The consumer here can compare the usefulness of individual goods or a set of them and order them according to the degree of preference. The theory of the optimal choice of the consumer proceeds from the fact that he exercises […]
Subjects and objects of the global financial market
For most securities and loans that circulate in the world’s money markets, interest rates as well as maturities are set in advance, which is especially important for buyers of financial requirements of the money market who want to invest their funds only for a short time and with minimal risk. In the short-term capital markets, […]
The role of international organizations in the regulation of IER
International organizations can be divided into two groups: universal: UN, WTO, OECD; regional, which are created within the framework of integration associations: CES, APEC, etc. A significant role in the interstate regulation of IER is played by the United Nations (UN), which includes 185 countries. Among the UN organizations directly related to economic activities, mention […]