Welcome to Citizendium: Difference between revisions

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imported>Hayford Peirce
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imported>Daniel Mietchen
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Revision as of 08:27, 20 January 2009


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Article of the Week [ about ]

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Production Possibilities Frontier.

Microeconomics is the branch of economics that deals with transactions between suppliers and consumers, acting individually or in groups. It is conventionally defined as being concerned with the allocation of scarce resources among alternative uses, but it is really about such down-to-earth matters as the way consumers' and suppliers' decisions affect the prices and the output of goods and services. Its practical importance arises from the influence of those decisions upon people's wellbeing. Although it may seem to be about money-related matters, its scope is in fact much wider. It is about how all sorts of needs and preferences can be met by mutually advantageous transactions.

Microeconomics attempts to throw light upon real economic activity by first examining the behaviour of simpified representations or models of the relationships involved, and then considering the influence of departures from the assumptions adopted in those models.

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Across a wide range of cultures some common themes recur, among them sympathetic magic. It attempts to use a symbol of some notable event to cause the full power of that event to manifest itself, most notably as seen in cargo cults. Classic examples of cargo cults, although they had been observed much earlier, played out in Melanesia during the Second World War: natives would see desirable "cargo" come out of an airplane, or, perhaps in a more modest fashion, cold beer from a refrigerator. They would subsequently construct wooden replicas of airplanes or refrigerators, hoping that, with the right invocation, they would then open their own door and find the same precious cargo. Where the goal of the cargo cult is to invoke and create, another aspect of sympathetic magic is to protect and control. In a healing rite from Jewish mysticism, a person who wanted bleeding to stop would sit under a drain, as others poured water over him, all saying a formula that predicted that as the water flow stopped, so would the blood flow cease..[more...]