Does economic theory have practical value?

Better Essays
Topics: Economics
State University – Higher School of Economics
International College of Economics and Finance

English Language

Essay

“Does economic theory have practical value?”

____________________
Group 2, 2 course

Moscow, 2013

Does economic theory have practical value?

Much of the usefulness of economic theory can be found in its application to our personal economic life. That is to say, lurking behind such concepts as opportunity cost, present value, supply and demand, and competitive markets are applications to our everyday life. The goal of this essay is to understand the most important principles that we will learn by using Economics Today, but also to allow us to apply them to problems that face us today, tomorrow, and for the rest of our life.
An effective treatment already exists for many diseases. In these cases the effectiveness of a new treatment may be established by showing that the new treatment is as effective as the old one. For an economic evaluation accompanying a clinical equivalence or no inferiority trial it is important to decide before the start of the study on the appropriate research question. In many cases the objective of the economic evaluation will be to show equivalence or no inferiority of the cost-effectiveness of the treatments. This has major implications for the design and analysis of the economic evaluation. In this essay we propose methods for the analysis of economic equivalence and no inferiority studies that are similar to the methods applied to clinical equivalence and no inferiority trials. Furthermore, cost-effectiveness planes prove to be a valuable tool in the interpretation of the results in an economic equivalence or no inferiority trial. The concepts described in the essay are illustrated using the results from an economic no inferiority trial.
Perhaps we have been told by well-meaning friends or relatives that we should strive for perfection. A common proverb is:
"If

You May Also Find These Documents Helpful

  • Satisfactory Essays

    Ryan Solitro 4/9/13 C period LA Argumentative Writing Piece Does television have educational value? It has been said that television, has little or no educational value. I strongly disagree with this statement for a number of reasons. These reasons include that there are television shows that talk about and teach many children about subjects they learn in school such as the science and history. Also, TV catches children’s attention in such a way that a teacher couldn’t, because the way producers…

    • 587 Words
    • 3 Pages
    Satisfactory Essays
  • Good Essays

    When Does Life Have Value? “I feel that the greatest destroyer of peace today is abortion, because it is a war against the child, a direct killing of the innocent child, murder by the mother herself. If we accept that a mother can kill even her own child, how can we tell other people not to kill one another?”------Mother Teresa, 1994. Its’ a travesty what our country defines as murder. I refuse to believe that a human life in our country is only worth a few hundred dollars. People that want to…

    • 709 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    Does television have educational value? Television, like anything else, has as much educational value as you allow it to. For example, television documentaries and sitcoms serve to reinforce or challenge societal norms and ideologies while reality television shows, in general, are intended to challenge long held beliefs and traditions. In contrast, Networks like as PBS and Nickelodeon educate young minds and the several hundred cable channels serve to support the education, whether easily apparent…

    • 355 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    ECONOMIC VALUE

    • 1000 Words
    • 3 Pages

    ECONOMIC VALUE Hong Kong prides itself as an open and international city with a level playing field for all. If we really want to be a world class city like New York, London or Toronto, we would need to demonstrate our tolerance and be receptive of people coming from diverse backgrounds. Literally we need to put our money where our mouth is, not just pay lip service to it but guarantee it by law. Hong Kong is a very multiracial society. We have many kinds of Chinese alone: Hong Kong Chinese, Mainland…

    • 1000 Words
    • 3 Pages
    Good Essays
  • Better Essays

    Decision theory tells what we may rationally prefer and not what we may rationally believe. Desires according to Hume, are original existences and not subject to rational assessment. Drier says this may be a bit of a bold statement but so what? It isn’t irrational that we have conflicting desires, but it is the decision out of them that is important. I don’t want sunburn. I stay inside. Trouble arises when I prefer staying in to sunbathing, sunbathing to short exposure and short exposure to staying…

    • 672 Words
    • 3 Pages
    Better Essays
  • Satisfactory Essays

    Economic Values of Business

    • 4626 Words
    • 19 Pages

    Syllabus SEMESTER I Sl. No. Subject Code Subject Title Area Credits 1 COM 625 Accounting Theory Acc & Fin 3 2 COM 600 Managerial Economics Gen. Mgmt 3 3 COM 626 Financial Management Acc & Fin 3 4 COM 601 Quantitative Techniques Gen. Mgmt. 3 5 COM 620 Marketing Management MM 3 6 COM 602 Economic Environment of Business Gen. Mgmt. 3 7 COM 615 Organizational Behavior OLS 3 GM = General…

    • 4626 Words
    • 19 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Economic Theories

    • 253 Words
    • 2 Pages

    Economic Theories The economic theory is divided into 3 theories; capitalism, socialism, & communism. Capitalism it’s an economic system that is based on private ownership of the means of production and the creation of goods or services for profit. For example, Japan & U.S. Adam smith had explained the workings of the free market within the capitalist economies and the individual freedom and choice emphasized. The second theory is Socialism and it's a theory of…

    • 253 Words
    • 2 Pages
    Satisfactory Essays
  • Better Essays

    Economic Theory

    • 1225 Words
    • 5 Pages

    Economic Theory Economic Theory Jose E Mendoza Allied American University Author Note This paper was prepared for ECN 150, Introduction to Microeconomics, Module 2 Homework Assignment taught by Nikki Follis. Part I After reading the two articles in Modules 1 and 2 related to Economic Theory (first,“How Did Economists Get It So Wrong” and second, “History of Economics Playground”), reconstruct what happened…

    • 1225 Words
    • 5 Pages
    Better Essays
  • Powerful Essays

    Economic Value Added

    • 8421 Words
    • 34 Pages

    Examining the components of economic profit and studying the finer points of its calculation require an understanding of its underlying principles. Here we look at how it matters as a performance measure - which is distinct from a wealth metric - and how it is closely related to market value added (MVA). Finally, in establishing an overall picture of economic profit, we help you undo any perceived complexity by showing how all of the calculations surrounding economic profit originate from three main…

    • 8421 Words
    • 34 Pages
    Powerful Essays
  • Satisfactory Essays

    Economics and Real Value

    • 975 Words
    • 4 Pages

    branch of economics that deals with which of the following topics? A) The behavior of individual consumers B) Unemployment and interest rates C) The behavior of individual firms and investors D) B and C E) A and C 2) Economics is about the allocation of scarce resources. Which of the following is NOT an example of economic scarcity? A) If Steve goes to see the movie Master and Commander on Saturday, he will not be able to afford buying ice cream. B) If Jenny studies for her economics quiz this…

    • 975 Words
    • 4 Pages
    Satisfactory Essays