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Experimental psychology Control is typically more lax than it would be in a laboratory setting. Other methods of research such as case study, interview, opinion polls and naturalistic observation, are often used by psychologists. These are not experimental methods, as they lack such aspects as well-defined, controlled ...
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Experimental psychology In addition, a conclusion can only be valid to the extent that the observations upon which it is based are reliable. Several types of validity have been distinguished, as follows: Internal validity refers to the extent to which a set of research findings provides compelling information about cau...
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Experimental psychology Conceptual and construct validity have a lot in common, but conceptual validity relates a study to broad theoretical issues whereas construct validity has more to do with specific manipulations and measures. Measurement can be defined as "the assignment of numerals to objects or events according...
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Experimental psychology Some statistics can be computed from ordinal measures – for example, median, percentile, and order correlation – but others, such as standard deviation, cannot properly be used. An interval scale is constructed by determining the equality of differences between the things measured. That is, numb...
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Experimental psychology Some psychological properties such as the loudness of a sound can be measured on a ratio scale. The simplest experimental design is a one-way design, in which there is only one independent variable. The simplest kind of one-way design involves just two-groups, each of which receives one value of...
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Experimental psychology For example, a 2x3 factorial design has two independent variables (because there are two numbers in the description), the first variable having two levels and the second having three. The effects of independent variables in factorial studies, taken singly, are referred to as main effects. This r...
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Experimental psychology Within-subjects designs have significant advantages over between-subjects designs, especially when it comes to complex factorial designs that have many conditions. In particular, within-subjects designs eliminate person confounds, that is, they get rid of effects caused by differences among subj...
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Experimental psychology Typically the images are photographs of the same object taken from camera positions that mimic the position and separation of the eyes in the head. When one looks through the steroscope the photos fuse into a single image that conveys a powerful sense of depth and solidity. Developed by Carl Lud...
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Experimental psychology An experimenter would generally use an audiometer to find the auditory threshold of a subject. The data received from an audiometer is called an audiogram. These determine the color composition by measuring its tricolor characteristics or matching of a color sample. This type of device would be ...
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Experimental psychology The Morris water maze is meant to test spatial learning. It uses a large round pool of water that is made opaque. The rat must swim around until it finds the escape platform that is hidden from view just below the surface of the water. The EEG is an instrument that can reflect the summed electri...
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Experimental psychology Some of the major topics studied by cognitive psychologists are memory, learning, problem solving, and attention. Most cognitive experiments are done in a lab instead of a social setting; this is done mainly to provide maximum control of experimental variables and minimal interference from irrel...
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Experimental psychology Sensory measurement plays a large role in the field, covering many aspects of sensory performance - for example, minimum discriminable differences in brightness or the detection of odors; such measurement involves the use of instruments such as the oscillator, attenuator, stroboscope, and many o...
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Experimental psychology Two widely cited experiments in social psychology experiment are the Stanford prison experiment conducted by Philip Zimbardo in 1971 and the Milgram obedience experiment by Stanley Milgram. In both experiments ordinary individuals were induced to engage in remarkably cruel behavior, suggesting t...
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Experimental psychology One school opposed to experimental psychology has been associated with the Frankfurt School, which calls its ideas "Critical Theory." Critical psychologists claim that experimental psychology approaches humans as entities independent of the cultural, economic, and historical context in which the...
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Say's law In classical economics, Say's law, or the law of markets, is the claim that the production of a product creates demand for another product by providing something of value which can be exchanged for that other product. So, production is source of demand. In his principal work, "A Treatise on Political Economy"...
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Say's law During the worldwide Great Depression of the 1930s, the theories of Keynesian economics disputed Say's conclusions. Scholars disagree on the question of whether it was Say who first stated the principle, but by convention, "Say's law" has been another name for the law of markets ever since John Maynard Keynes...
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Say's law Say further argued that because production necessarily creates demand, a "general glut" of unsold goods of all kinds is impossible. If there is an excess supply of one good, there must be a shortage of another: "The superabundance of goods of one description arises from the deficiency of goods of another desc...
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Say's law Mill wrote, "The production of commodities creates, and is the one and universal cause which creates, a market for the commodities produced." Ricardo wrote, "Demand depends only on supply." Thomas Malthus, on the other hand, rejected because he saw evidence of general gluts. We hear of glutted markets, fallin...
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Say's law As there may be a temporary excess of any one article considered separately, so may there of commodities generally, not in consequence of over-production, but of a want of commercial confidence. Mill rescued the claim that there cannot be a simultaneous glut of all commodities by including money as one of the...
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Say's law According to Keynes, demand depends on the propensity of individuals to consume and on the propensity of businesses to invest, both of which vary throughout the business cycle. There is no reason to expect enough aggregate demand to produce full employment. Today, most mainstream economists reject Say's law. ...
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Say's law Keynesian economists argue that the failure of Say's law, through an increased demand for monetary holdings, can result in a general glut due to falling demand for goods and services. Many economists today maintain that supply does not create its own demand, but instead, especially during recessions, demand c...
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Say's law Some proponents of real business cycle theory maintain that high unemployment is due to a reduced labor supply rather than reduced demand. In other words, people choose to work less when economic conditions are poor, so that involuntary unemployment does not actually exist. While economists have abandoned as ...
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Say's law According to Keynes (see more below), if is correct, widespread involuntary unemployment (caused by inadequate demand) cannot occur. Classical economists in the context of explain unemployment as arising from insufficient demand for specialized labour—that is, the supply of viable labour exceeds demand in som...
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Say's law Rather, Say sought to refute the idea that production and employment were limited by low consumption. Thus Say's law, in its original concept, was not intrinsically linked nor logically reliant on the neutrality of money (as has been alleged by those who wish to disagree with it), because the key proposition ...
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Say's law In the Keynesian interpretation, the assumptions of are: Under these assumptions, implies that there cannot be a general glut, so that a persistent state cannot exist in which demand is generally less than productive capacity and high unemployment results. Keynesians therefore argued that the Great Depression...
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Say's law One can read Say as stating simply that money is completely neutral, although he did not state this explicitly, and in fact did not concern himself with this subject. Say's central notion concerning money was that if one has money, it is "irrational" to hoard it. The assumption that hoarding is irrational was...
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Say's law In Keynesian terms, followers of would argue that on the aggregate level, there is only a transactions demand for money. That is, there is no precautionary, finance, or speculative demand for money. Money is held for spending, and increases in money supplies lead to increased spending. Some classical economis...
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Say's law Equilibrium analysis and its derivatives of optimization and efficiency in exchange live or die with Say's law. This is one of the major, fundamental points of contention between the neoclassical tradition, Keynes, and Marxians. Ultimately, from they deduced vastly different conclusions regarding the function...
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Say's law Keynes' innovation in this regard was twofold: First, he was to turn the mechanism that regulates savings and investment, the rate of interest, into a shell of its former self (relegating it to the "price of money") by showing that supply and investment were not independent of one another and thus could not b...
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Say's law For the Marxian critique, which is more fundamental, one must start at Marx's initial distinction between use value and exchange value—use value being the use somebody has for a commodity, and exchange value being what an item is traded for on a market. In Marx's theory, there is a gap between the creation of...
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Say's law Conceptually, the distinction between Keynes and Marx is that for Keynes the theory is but a special case of his general theory, whereas for Marx it never existed at all. A modern way of expressing is that there can never be a general glut. Instead of there being an excess supply (glut or surplus) of goods in...
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Say's law Contradicting this view, Arthur Cecil Pigou, a self-proclaimed follower of Say's law, wrote a letter in 1932 signed by five other economists (among them Keynes) calling for more public spending to alleviate high levels of unemployment. Keynes summarized as "supply creates its own demand", or the assumption "t...
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Say's law However, Keynes and others argued that hoarding decisions are made by different people and for different reasons than are decisions to dis-hoard, so that hoarding and dis-hoarding are unlikely to be equal at all times, as indeed they are not. Decreasing demand (consumption) does not necessarily stimulate capi...
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Say's law Keynes treats a fall in marginal efficiency of capital and an increase in the degree of liquidity preference (demand for money) as sparks leading to an insufficiency of effective demand. A decrease in MEC causes a reduction in investment, which reduces aggregate expenditure and income. A decline in the intere...
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Georgism Georgism, also called geoism and single tax (archaic), is an economic ideology holding that while people should own the value they produce themselves, economic value derived from land (often including natural resources and natural opportunities) should belong equally to all members of society. Developed from t...
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Georgism Economists since Adam Smith and David Ricardo have observed that a public levy on land value does not cause economic inefficiency, unlike other taxes. A land value tax also has progressive tax effects. Advocates of land value taxes argue that they would reduce economic inequality, increase economic efficiency,...
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Georgism George believed that although scientific experiments could not be performed in political economy, theories could be tested by comparing different societies with different conditions and by thought experiments about the effects of various factors. Applying this method, he concluded that many of the problems tha...
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Georgism , through income and sales tax), while socially created wealth in land values are privatized in the price of land titles and bank mortgages. The opposite would be the case if land rents replaced taxes on labor as the main source of public revenue; socially created wealth would become available for use by the c...
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Georgism Milton Friedman described Henry George's tax on unimproved value of land as the "least bad tax", since unlike other taxes, it would not impose an excess burden on economic activity (leading to zero or even negative "deadweight loss"); hence, a replacement of other more distortionary taxes with a land value tax...
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Georgism Henry George wrote that his plan for a high land value tax would cause people "to contribute to the public, not in proportion to what they produce ... but in proportion to the value of natural [common] opportunities that they hold [monopolize]". He went on to explain that "by taking for public use that value w...
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Georgism Income flow resulting from payments for restricted access to natural opportunities or for contrived privileges over geographic regions is termed economic rent. Georgists argue that economic rent of land, legal privileges, and natural monopolies should accrue to the community, rather than private owners. In eco...
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Georgism George likened the problem to a laborer traveling home who is waylaid by a series of highway robbers along the way, each who demand a small portion of the traveler's wages, and finally at the very end of the road waits a robber who demands all that the traveler has left. George reasoned that it made little dif...
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Georgism " Georgists were divided by this question of natural monopolies and often favored public ownership only of the rents from common rights-of-way, rather than public ownership of utility companies themselves. The early conservationism of the Progressive Era was inspired partly by Henry George and his influence ex...
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Georgism Ecological economists might price pollution fines more conservatively to prevent inherently unquantifiable damage to the environment, whereas Georgists might emphasize mediation between conflicting interests and human rights. Geolibertarianism, a market-oriented branch of geoism, tends to take a direct stance ...
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Georgism This distinction can be seen in the difference between basic cap and trade and the geoist variation, cap and share, a proposal to auction temporary pollution permits, with rents going to the public, instead of giving pollution privilege away for free to existing polluters or selling perpetual permits. The reve...
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Georgism Most early advocacy groups described themselves as single taxers and George reluctantly accepted the single tax as an accurate name for his main political goal—the repeal of all unjust or inefficient taxes, to be replaced with a land value tax (LVT). Some modern proponents are dissatisfied with the name "Georg...
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Georgism For similar reasons, others propose capturing only future land value increases, instead of all land rent. Although has historically been considered as a radically progressive or socialist ideology, some libertarians and minarchists take the position that limited social spending should be financed using Georgis...
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Georgism In 1931, the minority Labour government passed a land value tax as part III of the 1931 Finance act. However, this was repealed in 1934 by the National Government before it could be implemented. In Denmark, the Georgist Justice Party has previously been represented in Folketinget. It formed part of a centre-le...
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Georgism " Pastoriza, promoted a Georgist club in that city established in 1890. Years later, in his capacity as a city alderman, he was selected to serve as Houston Tax Commissioner, and promulgated a "Houston Plan of Taxation" in 1912. Improvements to land and merchants' inventories were taxed at 25 percent of the ap...
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Georgism In these countries, governments still levy some type of land value tax, albeit with exemptions. Many municipal governments of the US depend on real property tax as their main source of revenue, although such taxes are not Georgist as they generally include the value of buildings and other improvements. One exc...
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Georgism The IU is an international umbrella organisation that brings together organizations worldwide that seek land value tax reform. The economist Alfred Marshall believed that George's views in "Progress and Poverty" were dangerous, even predicting wars, terror, and economic destruction. Specifically, Marshall was ...
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Georgism " Marx also criticized the way land value tax theory emphasizes the value of land, arguing that, "His fundamental dogma is that everything would be all right if ground rent were paid to the state." Georgists such as Fred Harrison (2003) replied to these Marxist objections. Richard T. Ely, known as the "Father ...
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Georgism He wrote, "Trees do not grow into the sky—they would perish in a high wind; and a single truth, like a single tax, ends in its own destruction." Commons uses the natural soil fertility and value of forests as an example of this destruction, arguing that a tax on the in situ value of those depletable natural re...
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Georgism George has also been accused of exaggerating the importance of his "all-devouring rent thesis" in claiming that it is the primary cause of poverty and injustice in society. George argued that the rent of land increased faster than wages for labor because the supply of land is fixed. Modern economists, includin...
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Georgism Anarcho-capitalist political philosopher and economist Murray Rothbard criticized in "Man, Economy, and State" as being philosophically incongruent with subjective value theory, and further stating that land is irrelevant in the factors of production, trade, and price systems, but this critique is seen by some...
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Flypaper theory (economics) The flypaper theory of tax incidence is a pejorative term used by economists to describe the assumption that the burden of a tax, like a fly on flypaper, sticks wherever it first lands. Economists point out several flaws with the assumption: For example, consider a tax levied on a luxury ite...
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American School (economics) The American School, also known as the National System, represents three different yet related constructs in politics, policy and philosophy. It was the American policy from the 1790s to the 1970s, waxing and waning in actual degrees and details of implementation. Historian Michael Lind desc...
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American School (economics) Hamilton rooted this economic system, in part, in the successive regimes of Colbert's France and Elizabeth I's England, while rejecting the harsher aspects of mercantilism, such as seeking colonies for markets. As later defined by Senator Henry Clay who became known as the "Father of the Ame...
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American School (economics) These programs included the establishment of the Patent Office in 1802, the creation of the Coast and Geodetic Survey in 1807 and other measures to improve river and harbor navigation created by the 1824 Rivers and Harbors Act, Other developments included the various Army expeditions to the ...
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American School (economics) The name "American System" was coined by Clay to distinguish it, as a school of thought, from the competing theory of economics at the time, the "British System" represented by Adam Smith in his work "Wealth of Nations". The American School included three cardinal policy points: Henry C. Car...
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American School (economics) The government issue of fiat paper money has also been associated with the American School from the 1830s onwards. The policy has roots going back to the days of the American colonies, when such a type of currency called colonial scrip was the medium of exchange. As early as 1837, John C. Ca...
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American School (economics) To what have we been indebted for [the increased economic activity]? To protection and the " greenbacks"! What is it that we are now laboring to destroy? Protection and the Greenback! Let us continue on in the direction in which we now are moving, and we shall see ... not a re-establishment ...
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American School (economics) However, the national system of internal improvements was never adequately funded; the failure to do so was due in part to sectional jealousies and constitutional scruples about such expenditures. Clay's plan became the leading tenet of the National Republican Party of John Quincy Adams and ...
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American School (economics) This ideology governed Jackson's actions throughout his presidency, and heavily influenced his protégé Martin van Buren as well as the final Jacksonian president, James K. Polk. This commitment to the majority and to the voiceless came in direct conflict with many elements of the American Sy...
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American School (economics) This rhetoric, portraying the supporters of the bank as privileged individuals, and claiming the opposition of "a large portion of our fellow-citizens" crystallizes Jackson's majoritarian distaste for the special interest serving economic nationalism embodied in the American System. Jackon's...
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American School (economics) The bank thus fit well into Clay's worldview, and he took advantage of Biddle's manipulation in order to pass the renewal bill through Congress, despite expecting Jackson's inevitable veto. Clay hoped that when Jackson vetoed the bill, it would more clearly differentiate the two sides of the...
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American School (economics) This helped stave off the Southern nullification crisis, in which Southern states refused to enact the tariff, and threatened secession if faced with governmental coercion. The bill that reduced the Tariff of 1828 was co-authored by Henry Clay in a desperate attempt to maintain national unit...
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American School (economics) Due to the dominance of the then Democratic Party of Van Buren, Polk, and Buchanan the American School was not embraced as the economic philosophy of the United States until the election of Abraham Lincoln in 1860, who, with a series of laws during the American Civil War, was able to fully i...
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American School (economics) President William McKinley (1897–1901) stated at the time: The American System was important in the election politics for and against Grover Cleveland, the first Democrat elected after the Civil War, who, by reducing tariffs protecting American industries in 1893, began rolling back federal ...
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American School (economics) The New Deal continued infrastructure improvements through the numerous public works projects of the Works Progress Administration (WPA) as well as the creation of the Tennessee Valley Authority (TVA); brought massive reform to the banking system of the Federal Reserve while investing in var...
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American system of manufacturing The was a set of manufacturing methods that evolved in the 19th century. The two notable features were the extensive use of interchangeable parts and mechanization for production, which resulted in more efficient use of labor compared to hand methods. The system was also known as armory...
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American system of manufacturing The American system involved semi-skilled labor using machine tools and jigs to make standardized, identical, interchangeable parts, manufactured to a tolerance, which could be assembled with a minimum of time and skill, requiring little to no fitting. Since the parts are interchangeabl...
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American system of manufacturing English machine tool manufacturer Joseph Whitworth was appointed as a British commissioner for the New York International Exhibition. Accompanied by another British commissioner, he traveled around several states visiting various manufacturers, and as a result published a highly influen...
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American system of manufacturing But however skilled the machinist, parts were never identical, and each part had to be manufactured separately to fit its counterpart—almost always by one person who produced each completed item from start to finish. Mass production using interchangeable parts was first achieved in 1803...
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American system of manufacturing Tousard wrote two influential documents after the American Revolution; one was used as the blueprint for West Point, and the other became the officer's training manual. The War Department, which included officers trained at West Point on Tousard's manual, established the armories at Spr...
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American system of manufacturing A critical factor in making interchangeable metal parts was the invention of several machine tools, such as the slide rest lathe, screw cutting lathe, turret lathe, milling machine and metal planer. One of the most important and versatile of these machine tools was David Wilkinson's lat...
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American system of manufacturing The armories also openly shared manufacturing techniques with private industry. Additionally, the idea migrated from the armories to industry as machinists trained in the armory system were hired by other manufacturers. Skilled engineers and machinists thus influenced American clockmake...
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American system of manufacturing The Venetian Arsenal apparently produced nearly one ship every day, in what was effectively the world's first factory.
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Endogenous growth theory holds that economic growth is primarily the result of endogenous and not external forces. holds that investment in human capital, innovation, and knowledge are significant contributors to economic growth. The theory also focuses on positive externalities and spillover effects of a knowledge-bas...
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Endogenous growth theory It uses the assumption that the production function does not exhibit diminishing returns to scale to lead to endogenous growth. Various rationales for this assumption have been given, such as positive spillovers from capital investment to the economy as a whole or improvements in technology lea...
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Endogenous growth theory tries to overcome this shortcoming by building macroeconomic models out of microeconomic foundations. Households are assumed to maximize utility subject to budget constraints while firms maximize profits. Crucial importance is usually given to the production of new technologies and human capita...
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Endogenous growth theory R&D firms are assumed to be able to make monopoly profits selling ideas to production firms, but the free entry condition means that these profits are dissipated on R&D spending. An endogenous growth theory implication is that policies that embrace openness, competition, change and innovation w...
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Endogenous growth theory Stephen Parente contends that new growth theory has proved to be no more successful than exogenous growth theory in explaining the income divergence between the developing and developed worlds (despite usually being more complex). Paul Krugman criticized endogenous growth theory as nearly impos...
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Discouraged worker In economics, a discouraged worker is a person of legal employment age who is not actively seeking employment or who has not found employment after long-term unemployment, but who would prefer to be working. This is usually because an individual has given up looking, hence the term "discouraged". A d...
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Discouraged worker In the United States, a discouraged worker is defined as a person not in the labor force who wants and is available for a job and who has looked for work sometime in the past 12 months (or since the end of his or her last job if a job was held within the past 12 months), but who is not currently look...
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Discouraged worker Over time, it has been shown that a disproportionate number of young people, blacks, Hispanics, and men make up discouraged workers. Nonetheless, it is generally believed that the discouraged worker is underestimated because it does not include homeless people or those who have not looked for or held...
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Discouraged worker In this survey, all those expressing a desire for work and who are available for work are counted, irrespective of their past job search activity. In Canada, while discouraged workers were once less educated than "average workers", they now have better training and education but still tend to be conc...
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Discouraged worker If the discouraged workers and underemployed are added to official unemployed statistics Spain has the highest number real unemployed (8.4 Million), followed by Italy (6.4 Million), United Kingdom (5.5 Million), France (4.8 Million) and Germany (3.6 Million).
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Uccel UCCEL Corp, previously called University Computing Company ("UCC"), was a data processing service bureau on the campus of Southern Methodist University in Dallas, Texas. It was founded by the Wyly brothers (Sam and Charles, Jr.) in 1963. The name change in the mid-1980s was brought about by Gregory Liemandt, plac...
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Scarcity value is an economic factor describing the increase in an item's relative price by an artificially low supply. Whereas the prices of newly manufactured products depends mostly on the "cost of production" (the cost of inputs used to produce them, which in turn reflects the scarcity of the inputs), the prices of...
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Scarcity value Rarity leads to a high unit price of a species, hence to higher incentives to catch, which in turn increases rarity, inducing a higher price, higher incentives, and so on. An ongoing example of this kind of economic–biological feedback might be the case of the bluefin tuna. "Tom said to himself that it w...
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Production–possibility frontier A production–possibility frontier (PPF) or production possibility curve (PPC) is a curve which shows various combinations of the amounts of two goods which can be produced within the given resources and technology/a graphical representation showing all the possible options of output for ...
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Production–possibility frontier PPFs are normally drawn as bulging upwards or outwards from the origin ("concave" when viewed from the origin), but they can be represented as bulging downward (inwards) or linear (straight), depending on a number of assumptions. An outward shift of the PPC results from growth of the ava...
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Production–possibility frontier From a macroeconomic perspective, the PPF illustrates the production possibilities available to a nation or economy during a given period of time for broad categories of output. It is traditionally used to show the movement between committing all funds to consumption on the "y"-axis vers...
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Production–possibility frontier Conversely, a natural, military or ecological disaster might move the PPF to the left in response to a reduction in an economy's productive capability. Thus all points on or within the curve are part of the production set: combinations of goods that the economy could potentially produce....
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Production–possibility frontier Pareto efficiency is achieved when the marginal rate of transformation (slope of the frontier/opportunity cost of goods) is equal to all consumers' marginal rate of substitution. Similarly, not all Pareto efficient points on the frontier are Allocative efficient. Allocative efficient is ...
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Production–possibility frontier In the PPF, all points "on" the curve are points of maximum productive efficiency (no more output of any good can be achieved from the given inputs without sacrificing output of some good); all points inside the frontier (such as "A") can be produced but are productively "inefficient"; a...
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Production–possibility frontier ) and their relationships, see Sickles and Zelenyuk (2019, Chapter 3). The slope of the production–possibility frontier (PPF) at any given point is called the marginal rate of transformation (MRT). The slope defines the rate at which production of one good can be redirected (by reallocat...
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Production–possibility frontier The production-possibility frontier can be constructed from the contract curve in an Edgeworth production box diagram of factor intensity. The example used above (which demonstrates increasing opportunity costs, with a curve concave to the origin) is the most common form of PPF. It repre...
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Production–possibility frontier More specifically, with constant returns to scale, there are two opportunities for a linear PPF: if there was only one factor of production to consider or if the factor intensity ratios in the two sectors were constant at all points on the production-possibilities curve. With varying ret...
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