Uncertainty, optimization, interests

TERRA ECONOMICUS, , Vol. 11 (no. 2.1),
p. 136-151

The material represents the fourth chapter of the monograph «Anti-SaM: What is «wrong» in the Textbooks of P. Samuelson, N. Mankiw…» (forthcoming by Infra-M Publ., Moscow). Accounts of several authoritative introductory textbooks are compared, the notions under consideration are: uncertainty, optimization, marginal items, interests. Proceeding from this basis, the author's classification of subjects’ objective interests is made; two fundamental principles of economic rationality – one of cost minimization and the other of benefit maximization, – are described, with their associations to the effects of substitution and income, correspondingly, taken into account. Realization of the economic sovereignty both at nomadic and at settled ways of living, either in the past epochs, and in the societies of modern type, is accentuated as well.

Keywords: uncertainty; optimization; marginal items; interests; rationality; an income effect; a substitution effect; the economic sovereignty

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Publisher: Southern Federal University
Founder: Southern Federal University
ISSN: 2073-6606