Question

Write no more than 1 page, twelve font, double spaced. YOU MUST ADDRESS META-THEORY! You do not have enough pages to discuss all three, you should focus your answer on either ontology, epistemology or axiology.

1. In our neoclassical development of a model to analyze the allocation of scarce resources among competing ends, we make the assumption that price will gravitate to the true value of goods and services through the aggregation of optimal choices. Is this a valid assumption?

Answer 1

In the neo classical development of a model to analyze the allocation of the scarce resources among the competing ends we made the assumption that price must gravitate to the true value of goods and services through optimal choices.

Axiology is the study if value. This branch of philisophy concentrates on two kinds if values namely, ethics and aesthetics. Ethics is concerned about what is right or wrong. Aesthetics on the other hand is concerned about beauty and harmony.

When resources are scared, people will concentrate on the goods which have true value to them for their basic survival. Hence, the ethics part of the good will come become s concern for the people. People will choose those goods which have a true value to them. Again, they will choose those goods which will have a beauty and will have a harmony . As resources become scarce, then the people need to maintain harmony among themselves. Hence, the aesthetic value of the good is also important.

Thus is why when resources are scared price will gravitate to the true value of goods and services through optimal choices. In this situation people will only consume the goods needed for their basic survival. Hence, goods consuming those which would give them a basic survival would be having prices. This is because people will consume only these goods needed for their survival and other goods would become irrelevant to them. Thus those goods needed for their survival will have prices gravitated towards them.