The name of economics is not new for a country because, it is something very important from their own viewpoint in particular. Economics is not a new subject; it starts with the birth of a child and in the world it starts with the commencement of the Universe. The main theme of Economics is all about to earn the money and its consumption, as well.
Alfred Marshal and Adam Smith are known as the key players in the market of economics who identified the most basic definitions of this particular term and then the numbers of authors have identified their analysis for this particular analytical framework in particular. The scope of economics is extremely high and effective as well that is quite important in the current scenario, as well. There are certain theorists who identified a number of aspects of economics and according to their aspect, economics is a thing that counts under every walk of life of an individual in particular and all of the aspects should be taken into account for the same.
Every theory is different from the viewpoint of its angle and subjection; hence there is a clear difference found among them. In economics, there are a number of theories that are having effectiveness in particular, and there are some comparisons as well among their theories. The main perspective of this assignment is to analyze the comparison and contrast analysis of two different theorists in particular. The names of the theorists are Jevons and Menger & Walras. The theories that represented by these individuals have been referred as the Theory of Value Advance in particular. The assignment has been distributed into three different sections, which particular are introduction, analytical framework and conclusion. In the section of the analytical framework, both comparison and contrast would have been highlighted accordingly and effectively, as well.
The concept of economics depends heavily over the theories and mathematical models, and there are certain aspects that have to be taken into consideration by the economists in order to reach at a certain conclusion. As discussed above that economics is a subject that has its recognition in almost every walk of life and this particular aspect should be taken into account in almost everything. Most of the concepts of economics depends heavily over the theories and models and among these theories, the names of theories that deem effectively are Jevons’s theory is one of them.
William Stanley Jevons is known as the founder of this particular theory, and he was an English Economist. The entire theme of his theory based on consumption of the goods according to their demand. The theory that presented by Jevons, is known as the theory of Jevons paradox. In the field of economics, the name of Jevons Paradox is showing the proposition that with the increment of technology, the level of efficiency among the companies along with the resource based things would increase considerably, as well. The theory was presented in the end times of the 18th century. In 1865, British economist William Stanley Jevons noted that, technical improvements would lead to improving the efficiency of coal use and also led to an increase in coal consumption in a wide range of industries. He believes that with the general intuition, cannot rely on technological improvements to reduce fuel consumption.
According to the main crux of the theory of Jevons, energy should be consumed in a positive and effective way; otherwise it may bring problems and issues for the companies from different angles. He positioned his theory on the consumption of coal in a given country and it may be effective or may not be effective for a country from both financial and non financial aspects. He was very much towards utilizing the energy consumption and makes it effective. According to the theory of Jevons, the utilization of energy should be positioned according to its usage and must not waste it at a place from where there would be no valuables and no benefits related to it. William emphasized a lot on the utilization of fuel and other energy consumption item over an economy in order to increase the resource s of the company and then increase the demand of resources. He also produced some graphs and charts with his theories. William presented his theory at the time, when the coal reserves in the United Kingdom decreasing heavily as compared to other peer countries, and the main reason behind this decreasing capacity and frequency is the ill utilization of energy and other effective resources.
He presented some very important relationships between elasticity and demand function in particular, and all of these things have to be in line with the utilization to become economically prosperous and used the resources of the country in an efficient manner. According to the theory of William, if the technology would be improved accordingly for a given country or company, then the company or the country would become able to get the most from their workers and produced more things in a given time frame. It is very important for the companies to check out the elastic demand in particular and enhance the prices in particular. Most of the time, technology almost doubles the efficiency of the workers in particular by changing the demand function and resource based function in particular. In general, the concept of demand and supply is very easy to understand, which is that a decrease in the price of goods would increase the quantity demanded of the same product and vice versa. But the concept of Jevons identified its effectiveness to technology as according to his idea, technology should be used and implement in a manner from which influx of resources should be present. The idea of William was right, though the idea has been presented on the consumption of coal in the United Kingdom (UK), but it could be applied on any other aspect, as well.
In the modern world, the utilization of technology has now become an important and integral part of the economy as well as for a company, as without this particular aspect, a country is unable to take effective decisions accordingly. Technology has totally outpaced the world and now all the countries are at the mercy of technology in particular. The work is performed by 100 labors in 100 minutes is now possible to do in less than 30 minutes with lesser labor applied. Though, the technology makes the life easier for the companies by providing cost efficient procedure to them, but these aspects are also increasing the level of unemployment in different countries of the world. Among all of them, the name of the United States and the UK are some of the mainstream market, wherein the stance of technology is on a high place. If the companies are getting cost efficient solutions, then they will provide the products in lower amounts as well that decreases the prices accordingly and increases the attraction of the consumers for the same product.
On the other hand, there is a theory of Menger & Walras as well, which identified the utilization of resources of the country or company in particular. According to the analysis of Menger & Walras, the resource of a company would be analyzed in an effective manner; otherwise it will create problems for the companies as well as for the companies. Menger & Walras were in the fact of the utilization of technology to increase the productivity as well as a resource base of the country or company in particular. The theory of Menger & Walras is referred as Marginalism. It is a theory of economics that attempts to explain the basic discrepancy in the value of the goods and services referenced specifically by the marginally based utility. The theory has been used to essential and non-essential services between interpretations, such as an air conditioning repairman why pay more than those in the nurse's wage differentials. The theory emerged in the mid-to late 19th century in response to classical economics and the growing controversy socialist social and economic activities of the normative approach. The marginal discipline of economics is used to improve the level of objectivity and universality so it would not be benefited a normative criticism attempt. The theory has been attacked because of its failure to understand the nature of the market, and it cannot explain the new empirical data.
A marginal Utility theory is an effective theory from different standpoints, and there are a number of aspects that are having its effectiveness in particular. It is again an important theory in which it is found that labors should be compensated in a way that they will not get any problems while working in a company. In the current scenario of the organizations, this particular theory is also extremely important and vital in organizations working today. Today even in the 19th century, the stance of marginal utility and satisfying the needs of the labors are very important and vital as it is something very much effective for the sake of the organizations.
Comparison among the Theories
There are two theories that have been used in this particular analysis, and both of the theories are effective for the sake of the organization and for a country. The basic comparison among these theories is that both of these theories related to the labor efficiency and organizationally based productivity and of both of these aspects are in the favor of the company, and then such company would certainly get an appreciation in both financial and nonfinancial ways. From the analysis of both of these theories, it is found that both of these theories are highly effective in terms of labor based analysis, and it is equally beneficial in the current economic scenarios in particular, as well. Both of these theories are now utilizing in different parts of the world in terms of labor productivity and efficiency. If the efficiency and labor productivity would be in a higher place, then it would bring effectiveness in the company; therefore, companies have to use the same to become economically prosperous and strategically fit.
Contrasting among the Theories
Both of these theories are somewhat comparative with each other, but it has been a consensus that there are a number of aspects, in which this particular theory is totally different with each other in particular. Both of the selected theories are different in some part into it. Jevons at one hand, emphasize a lot on the technological efficiency and its core effects over the labor efficiency and productivity of an organization; however, the theory that presented by Menger & Walras are more towards labor efficiency and productivity. As per the main crux of this particular theory, the utility and stance of consumption is different for each individual working in the company and technological efficiency would not do anything related to the same.
When it comes to income and spending money, then this moment over the screen in the field of economics, it is the aspect of its consumption is known as the most influential in the field and use. The discipline of economics has the guts to completely deter market, its structure, which is why this particular topic has the highest level of appreciation of the main reasons associated with it. There are two different kinds of economics, which particularly are microeconomics and macroeconomics. The main perspective of this assignment is to analyze the comparison and contrast analysis of two different theorists in particular. The names of the theorists are Jevons and Menger & Walras. From the entire analysis, it is found that there are certain ways in which both of these theories are completely identical and heterogeneous with each other.