501c6 non profit
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501c6 non profit

China's understanding of the market is mainly based on mechanical reference to western economic theory, but it ignores their assumptions and implicit assumptions. China's so-called mainstream economists' understanding of the market is more of a new classic. In other words, the market is an efficient allocation of social resources pricing mechanism. Although China has introduced new institutional economics, it has not read the meaning of "property rights", and mechanically believes that property rights are based on "stock of property". In theoretical economics, investment means buying (and therefore producing) capital goods - not being consumed but being used in future production. Examples include building railroads, or factories, cleaning the land, or allowing yourself to go to college. Strictly speaking, investment in formula GDP= C + I + G + NX is also part of gross domestic product. In that respect, the function of investment is divided into non-residential investments (such as factories, machinery, etc.) and residential investment (new homes). The correlation between I = (Y, I) is known to have a close relationship with income and interest rates. Higher incomes would boost higher investment, but higher interest rates would discourage investment because it would be more expensive to borrow. Even if companies choose to use their own funds to invest, interest rates represent the opportunity cost of investing in those funds rather than the interest that will lend out. Economic profits in perfect competition and monopolistic competition market has a special purpose, a positive profit can attract more enterprises to enter the market, increasing competition and push the market equilibrium price low, exclude some enterprises lack of competitiveness in the market, to achieve long-term equilibrium; On the contrary, negative economic profit can eliminate some of the original enterprises in the market, because the supply is reduced, the market equilibrium price will be pushed up, and the long-term equilibrium will be achieved. The result of the two cases is that economic profits disappear from each manufacturer and the manufacturer's total income is at the lowest point of average cost. The value was originally derived from the special material system, the preordering movement of dissipative structure, and the "ordering energy" was the original "value". With the continuous evolution of human beings, "ordering energy" further developed into "generalized and orderly energy", which gradually became the real human value. In a word, the value is derived from the nature, and with the evolution of the human evolution, the development of the society, the development trend of value of ultimate principle is only the movement of the material world and labor of human society.