5 Questions
According to Mitchell, what does the mainstream economic view consider as the core of economic activity?
The mainstream economic view considers equilibrium state as the core of economic activity.
Why does Mitchell prefer to focus on real factors and real progress before forming a theory?
Mitchell prefers to focus on real factors and real progress before forming a theory rather than simply using equilibrium state as a tool to analyze economic activity because the core of economic activity is not an equilibrium state but rather the interaction between institutional factors that maintain a stable social structure and technical forces that drive change.
What is the main drawback of the deductive reasoning method according to Mitchell?
The deductive reasoning method is unable to address the complex dynamics of the real economic system, leading to inaccurate conclusions.
What did Mitchell's argument against mainstream economics lead to in terms of method development?
Mitchell's argument against mainstream economics led to the development of statistical methods by relying on empirical evidence.
According to Mitchell, what is the core of economic activity?
The core of economic activity is the interaction between institutional factors that maintain a stable social structure and technical forces that drive change, rather than an equilibrium state.
This is a group assignment prepared for the EIA3003 / EIA3008 Development of Economic Thought course at University Malaya. The assignment is about Wesley Clair Mitchell and his study of the heterodox economy, particularly focusing on the business cycle.
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