Topic

theory

• Economics

  Economics is a science studying human behavior.

• How Can We Select a Good Theory?

  A good theory must explain not only phenomena of a similar kind, but also phenomena that are contrary to one another. Your explanations of the opposite phenomena arise from the same underlying theory, with parameters of constraints instead of a new ad hoc postulate.

• Axioms of Economics

  Economics uses axiomatic approad to study human behavior, and its axioms are: individuals choose actions that maximize their self-interest subject to constraints; with respect to economic goods, more is preferred to less, something is preferred to nothing, and individuals value variety.