常考名词解释（Noun interpretation）.docVIP

常考名词解释（Noun interpretation） Often the interpretation of nouns: Economic man hypothesis: a basic assumption of economic analysis in western economics. Includes the following: 1. In economic activities, the sole goal pursued by the individual is the maximization of its own economic interests; 2. All economic actions of individuals are conscious and rational, and there is no empirical and stochastic decision-making; 3. The economic person has adequate economic information, everyone is well aware of the conditions and consequences of all its economic activities, there is no uncertainty, no cost to obtain information, 4, resources can be free of any cost of the flow between sectors, regions. Opportunity cost: Refers to the maximum income that people can get from other possible uses when they use certain resources to get some income. The opportunity cost of a product in the production of a units is the highest income that the producer has given up by using the same factor of production for other production purposes. There are three prerequisites: 1, resources are scarce, 2, resources have a variety of production purposes, 3, the resources are not restricted. Cobweb Model: A dynamic model for analyzing the yield and price fluctuations of long product cycles in western economics. The basic premise is that this period of consumption is affected by the current price, this period of supply is not only affected by the last period price, but also affect the formation of the next period price. The model analyses three kinds of conditions: convergent cobweb, Divergent cobweb and closed cobweb. Engels Law: Engels rules from statistical data. The proportion of food expenditure in income is reduced as income increases in a country. Using the concept of elasticity to describe Engels law can be: for a family to obtain a country, the higher the degree of affluence, the more the income elasticity of food expenditure, and conversely, the greater. Engels law is based on empirical data, whi