1. Smith and the wealth of nationsAdam Smith is a classical economist, who discussed the source of wealth for the already developed countries today. Smith said that the wealth of nations was the result of the accumulation of capital, trade and division of labor. He said that economic growth depends on capital accumulation, which in turn depends on savings and investment. Therefore, wealth is accumulated by the accumulation of capital through which capital accumulation depends on saving and investment in the economy, but Smith did not take into account the role played by technological progress, because he regarded the accumulation of capital in the absence of progress technologique.Il also acknowledged the role played by trade in the accumulation of wealth, he advocated free trade when the Trade between countries has been characterized by no restrictions on trade such as tariffs and quotas. Therefore, countries would acquire wealth through trade, division of labor is another factor that Smith discussed the division of labor which would lead to economic development. With the division of labor productivity and the cost of production would allow a country to accumulate richesses.De the discussion above, therefore the work of Smith in the Wealth of Nations, it is clear that n ‘ did not treat technology as a factor that would lead to economic development, apart from traditional schools there are other researchers from different schools to explain the wealth of nations, such as business school theory Rostow’s stage of growth. However, now considered as the classical school was called classic because of their unquestioned authority of economic thought and that scientists who have written about the economy have taken a piece of classical scholars. For this reason, the accumulation of capital, therefore, the division of labor and trade are still regarded today as a source of economic development and a source of richesse.2. The law of diminishing marginal utility and the law of demandThe decay law of marginal utility that represent the consumption of a good increases then the utility from consumption of an additional unit of a product allows to reduce the consumption of that good increases, this theory shows that consumers derive utility from consumption goods, but the utility derived from consumption of an additional unit of a product is decreasing. This theory is related to the law of demand when consumers will demand the level of objects to which they maximize their utility, they must consider the utility derived and the price level and the optimal utility level is determined by the marginal utility curve while the price level is determined by supply and demand. This theory of diminishing marginal utility and demand theory can not be in line with the other, that’s where reduced prices and increased demand. However, the law of demand at individual level is violated especially when we have abnormal products, being goods Giffen, Giffen good for the price of a good rises when the demand increases aussi.3. absolute advantage and comparative advantage: absolute advantage is the advantage that your country has more to another country, this theory assumes that we have two countries and we have two products and that the only factor of production is the work now, if we assume that the two products they produce are sugar and rags. Now, if we have a country B and country A and country A using 20 units of labor to produce a bag of sugar and country B uses 10 units of labor to produce a bag of sugar and then using the theory of absolute advantages, we conclude that country B has an absolute advantage in producing sucre.Si we consider the comparative advantage, this theory supposes that we have only two products, two countries and the only factor of production is work, so if a country has an absolute advantage over other countries inb production of both goods, the theory states comparateive benefits that both countries will still gain from this. We believe that countries A and B and X and Y that are produced in both countries, country A is uses10 work units in the production of good X and country B uses 20 units of work in the production of X . A good country uses 15 units of labor in the production of good Y and country B uses 18 units of work in the production of Y. From the above discussion, it is clear that the country has an absolute advantage in producing the two properties, because it uses fewer units of labor in the production of two goods that the country B. According to the theory of comparative advantage of country A has a comparative advantage in producing good X and country B has a comparative advantage in producing good Y if both countries produce goods they have an advantage comparison, then the two countries échanges.La theory of comparative advantage explains why countries trade, even if they can produce goods at lower cost, which can be explained by the theory of comparative advantage. Therefore, the theory of comparative advantage of David Ricardo best explains the current situation in the trade and why pays.4. Say droitDit law was formulated by Jean Tell, the law stipulates that there can be no demand without supply for this reason said state law since the recession did not occur due to failure of the application Overall, according to Keynes recessions can be caused due to a failure of aggregate demand, but according to law says a recession can not be due not later demande.Selon of the law indicates that unemployment could not be caused by a fall in aggregate demand, yet Keynesian unemployment may be caused by a failure of aggregate demand and that is what he called cyclical unemployment, this kind of unemployment is caused by business cycles that exist in an economy. From the above discussion it is clear that Keynes is able to criticize mainstream economists views on the economy in particular on issues related to the recession and chômage.5. J. S. MillJohn Stuart Mill built on the ideas put forward by David Ricardo and Adam Smith, they were classical economist, who based their philosophy about human nature, Mill said that the affairs of life should be left to those most suitable and interested, through his statement, it is clear that Mill advocated a free market. However, he accepted the intervention of government through taxes and spending in the economy. Mill describes a system of logic where it has identified five principles, including the difference method, the method of agreement, method double the difference and agreement and, finally, the residual method. For this reason, it is clear that Mill argued for the school classique.6. firm’s maximization profit.Compte view information on the increased production of a business because it enhances their employees, it is easy to determine the optimal point of production, according to neoclassical theory, there are three phases of production that the firm increases its input variables, more returns to scale, constant returns to scale and decreasing returns to scale. A firm will increase its variable input and experience an increase in the marginal productivity of labor, but the marginal return peaked and began to decline at this peak, thus is the most optimal production.Compte view of our data so we can make our marginal change in output by calculating the change in output that employees increase of Us: The following table summarizes the changes; emploitotal produitsprixchangement of the total production may be production003011231222231033038436365403464232La demonstrated by the following: The incremental change can be shown in the diagram below: In the diagram above then the company must employ a person, because when we employ someone change Marginal is the largest and the diagram shows that when a person is employed by the change in output is at its maximum.7. demandeLorsque price elasticity of demand of goods produced by a firm is price elastic means that increasing the price of this product will result in a lower level of demand, if demand is inelastic, then at this that increasing the price of this commodity will not result in a decrease in demande.Par Therefore, when the price elasticity of demand of a company is inelastic, then the company can increase its revenue increasing the price of the property, because, even after the price increase in demand does not decrease the property and therefore the income will augmenter.8. econometrics and economic modeling involves mathématiquesEconométrie economic relations. this is testing hypotheses given the economic theory and data. Econometrics implies the use of classical linear estimation model to estimate models that explain the dependent and independent variables that can be used to predict and forecast. These models are tested using the appropriate test of validity, such as t-tests given the null hypothesis and the alternative hypothesis. An example is to test whether the demand for a commodity depends on the price and the model is to estimate SD = a + b P, where DD is a dependent variable and P is an independent variable. Using data given on prices and demand, we may be able to estimate the mathematical modèle.Economie involves the introduction of mathematics in the field of economics, which involves the introduction of the mathematical t4echniques calculation, differentiation, integration. These methods are useful in the economy and, for example taking into account the function of the total product, we can learn the function of the marginal product by differentiating the function of the total product, for example taking into account the total production function: TP = x2 + 3x + 4Alors, our production function is given by marginal δTP / δ X = 2x + 39. Monetarist and new classical economists and school keynésienneMonétariste and neoclassical schools are against the explanation of Keynesian economics, Keynes argued that the economy should be a free market economy and the government should not interfere with operations of the free market, however, the state classical economist, the importance of state intervention and government in the economy to solve the problems that lead to failure of marché.Keynes argue that the recession may be caused by a fall in aggregate demand in an economy, but other schools are opposed to this idea and argue that the recession may not be caused by deficiencies in aggregate demand. In addition, they differ in their explanation of the causes of unemployment, Keynes argued that the existence of unemployment conjoncturel.10. Galbraith theory pouvoirLa cons-cons-theory of power has been developed by Galbraith, this theory is a theory of change in procurement policy, according to the goods free market economist and services are provided in the market and price these products are determined by market forces depending on the level of supply and demand in the market, but according to Galbraith is not the case in the modern world is because large firms enormous power which in turn distort the market libre.Toutefois, he said, resulting in increased pressure by unions and other organizations to deprive these large companies outside their market power. A good example may be the existence of imperfect market structures, such as monopoly, oligopoly and monopolistic competition in the economy that have pricing power in the economy .11. The pension économiqueIl are various factors of production as the classical economists identified and they include land, labor, capital and enterprise. They also found the rewards to factors of production where the land gaining the rent, labor earns wages or salaries, capital produces earnings and profits of entreprises.Il should however be noted that the economic rent is not the reward is derived from land use, economic rent is the difference between what is paid to factors of production and workforce, the value that should be paid for the use of factors. Smith, however, indicated that economic rents can be created by monopoly power and influence politique.Parce that economic rent is the difference between what needs to be paid and what is actually paid then the price control will result in economic rent, the market power of the monopoly firm is able to charge high prices over what should actually be charged and for this reason that the rent économique.Land as an economic resource accrue rent increase further due to the fact that overtime will know the land development and new opportunities to acquire more gains for example land that is left of the UN used can be transformed into a playground, later it can be developed by the construction of residential houses. In this way, there will be increased revenues facteur.12. marginal productivity and wage legislation minimumLes companies use the concept of marginal productivity to determine the optimal point of production, labor costs in the economy will determine the costs of producing the product in the economy. Companies must consider the function of marginal cost and produce at the point where costs are at their bas.Lorsque the legislature introduced the minimum wage is so labor cost increases, this occurs when the increased cost of production and the total cost function of firms increases, when the marginal cost changes due to an increase in the total cost when a firm will tend to lay off workers because of rising costs and because they want to produce where costs are lower and therefore they lay off workers resulting in increased unemployment in the economy. Reference: Hadjimichalakis M. (1982) the modern economy, Prentice Hall Publishers, New JerseyStratton (1999) Economy : a new introduction, Pluto Press, New YorkSamuelson (1964) Economics, McGraw-Hill Publishers, New YorkThomas B and F Pascal (1995) Beyond Rhetoric and Realism in Economics: Towards a reformulation of economic methodology, Rout ledge, LondresPhilip Hardwick (2004) Introduction to the modern economy, Pearson Press, New York
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