Read e-book online 2008 Schweser QuickSheet: Critical Concepts for Exam PDF

Maximize your research time whereas reviewing the the most important innovations with this well-organized, laminated reference sheet that includes: * an important thoughts * Topical insurance * particular graphs * Key formulation

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Read Online or Download 2008 Schweser QuickSheet: Critical Concepts for Exam Success. Level 2 PDF

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Additional resources for 2008 Schweser QuickSheet: Critical Concepts for Exam Success. Level 2

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The description of our own behaviour therefore depends on a normative assessment. The more we describe the behaviour of others by analogy with our own reasoning, the closer the threads of ‘is’ and ‘ought’ will run together. The process of choice can be evaluated as well as described. The concept of rationality is itself often used in a value-laden sense. Hausman and McPherson, in their valuable survey of the interface between economic theory and ethics, make the point forcefully:38 Despite the fact that utility theory makes no substantive claims about what people should prefer, it remains a normative theory concerning how people ought to choose, rather than a positive theory of how people do choose or merely a model or a definition.

Consider also the choice between income and leisure facing a part-time worker: when the hourly wage rises, he or she may decide to work fewer hours, not more. Similarly when the rate of interest rises, some people will save less, and add little or nothing to their prospective income in the future. We have described consumer theory in terms of preferences and rankings, not in terms of happiness or standards of living. 43 Utility or happiness was imagined to be measurable on a cardinal scale. In other words it was thought to make sense to say that I would be twice as happy in one situation as I would be in another.

These include pre-destination and the rationality of conversion. ) 40 41 48 Baker, J. , The Foolishness of God, Fontana, 1970. , Against all Reason – The Religious Life in the Modern World, Weidenfeld and Nicholson, 1969. 42 The theory of consumer behaviour begins with three basic assumptions regarding people’s preferences for one market basket versus another. We believe that these assumptions hold for most people in most situations. Thus these assumptions are put forward almost as articles of faith, based presumably on introspection.

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