Let’s Learn Austrian School Of Economics

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4 years ago

The Austrian School is a heterodox school of economic thought that is based on methodological individualism—the concept that social phenomena result exclusively from the motivations and actions of individuals.


The economic values of goods and services are subjective in nature, so what is valuable to you may not be valuable to your neighbour.

 

With an increase in the number of goods, their subjective value for an individual diminishes. This valuable insight lies behind the concept of what is called diminishing marginal utility.







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