00:18 |
Author: sang pencari ilmu
What is Economics? if you student's economics so must understand the economy meaning. Economic is a study of men as they live and move and think in the ordinary business of life. But it concerns it self chiely with those motives which effect, most powerfully and most steadly man's coduct in the business part of life. Everyone who is worth anything carries his higher nature with him to business; and there as elsewhere he is influenced by his personal effections, by his conceptions of duty and his reverence for high ideals. The motive is supplied by a definite amount of money : and it is this definite and exact money measurement of the steadiest motives in business life, which has enabled economics for to outrun every other branch of the study of man. Just as the chemist's fine balance has made chemictry more exact than most other physical sciences; so this economist's balance, rough and imperfect as it is, has made economics more exact than any other branch of social science. But of course economics cannot be compared with the exact physical science: for it deals with the ever changing anf subtle forces of human nature.
There are several other limitations of the measurement of motive by money to be discussed. The first of these arises from the necesessity of taking account of variations in the amount of pleasure, or other satisfication represented by the same sum money to different persons and under different circumstances.
A shiling may measure a greather pleasure (or other satisfaction) at one time than a another even for the same person; because money may be more plentiful with him, or because his sensibility may vary.
20:53 |
Author: sang pencari ilmu
Economic condition are constanly changing,and each generation looks at its own problems in its own way. In England, as on the continent and in America, Economics studies are being more vogorously pursued now than ever before; but all this activity has only shown the more clearly that economic science is, and must be, one of slown and continous growth. Some of the best work of the present generation has indeed appread at first sight to be antagonistic to that of earlier writers; but when it has had time to settle down into its proper place, and its rought edges have been worn a way, it has been found to innolve no real breach continuity in development of the science. The new doctrines have supplemented the older, but very seldom have subverted them.
Application of the principle of continuity is the use of terms. There has always been a temptation to classify economic goods in clearly defined groups about which a number of short and sharp propositions could made, to gratify at once the student's desire for logical precision, and the popular liking for dogmas that great mischief seems to have been done b yielding to this temptation, and drawing broad artificial linesof division where nature has made none. The more simple and absolute an economocs doctrine is the greather will be the confusion which it brings into attempts to apply economic doctrines to practice, if the divilding lines to which it refers cannot be found in real life. There is not in real life a clear line of division between things are and are not capital, or that are not necessaries, or againt between labour that is and not productive.
23:10 |
Author: sang pencari ilmu
If a firm athempts to maximize its fundamental. Stock price, is this good or bad for society? In general, its good. Aside from such illegal actions as fraudulent a accounting, exploiting monopoly power, violoting safety codes, and failing to meet environmental standards, the same actions that maximize fundamental stock prices also benefit society. Here are some of the reasons:
- To a large extent, the owner of stock are society. Seventy- five years ago this was not true, because most stock ownership was concentrated in the hands of a relatively small segment of society, comprised of the wealthiest individuals.
- Consumer benefit. Stock price maximization requires efficient, low- cost businesses that produce high-quality goods and services at the lowest possible cost. This means that companies must develop product and sevices that consumers want and need, which leads to new technology and new product. Also, companies that maximize their stock price must generate growth in sales by creating value for customers in the form of efficient and courteous services adequate stocks of merchandise, and well- located business establishedments. People, increase product prices and gouge the public. In a reasonably competive economics, which we have, price are constrained by competition and consumer resistance.
- Employees benefit. There are cases in which a stock increase when a company announces a plan to lay off employees, but viewed overtime this is the exception rather than the rule. In general, companies that successeful increase stock prices also grow and add more employees, thus benefiting society.
One of fortune magazine's key criteria in determining their list of most admired companies is a companies is a company's ability to attract, develop and retain talented people. Their results consistenly show high correlations among a company's being admired, its ability to satify employees and its creation of value for shareholders. Employees find that it is both fun and financially rewarding to work for successful companies. Thus, successful companies get the cream of the employee crop, and skilled, motivation employees are one of the keys to corporate success.
