Academic Class : Economics Theory

FE UNIBA - 1st semester, 2020/2021

Lectures/Class Mgr. : Andi M. Lutfi
email : andi_mulyadi_lutfi@yahoo.com
Mata Kuliah : Teori Ekonomi Rec. date : .............. 2020
Dosen Pengasuh : Andi M. Lutfi, SE, MSi. Posted date : .............. 2020
Prodi : Management - Acounting Assignment : Individual - Rollover
Major Assignments (HW) no. 09

Group no : (leave it blank)

Assigned to ;
1. (Name 1)
2. (Name 2) Economic Theories
3. (Name 3) A brief Profile
4. (Name of Rebutter 1)
5. (Name of Rebutter 2)
Name (NIM)
Signature
1. (Theory title)

Guiding questions Descriptions Ref.

… the theory /
hypothesis / model
A was created to 1.
address the problem
of .. ?
.. Who created or
B developed those 2.
theories ?

.. Break it down !/
C how the theory 3.
works ?

.. briefly describe
the future
D 4.
application of the
theory !
.. are there any
critiques on the
theory ?, are there
E 5.
any competing /
alternative theories
?

Key words :

Econ. Theories template - Andi M. Page 1

 Academic Class : Economics Theory
FE UNIBA - 1st semester, 2020/2021
Lectures/Class Mgr. : Andi M. Lutfi
email : andi_mulyadi_lutfi@yahoo.com

Reff and Notes :

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Econ. Theories template - Andi M. Page 2

 Academic Class : Economics Theory
FE UNIBA - 1st semester, 2020/2021
Lectures/Class Mgr. : Andi M. Lutfi
email : andi_mulyadi_lutfi@yahoo.com

UNIVERSITAS BATAM - FAKULTAS EKONOMI

SEMESTER GENAP - 2020/2021
Mata Kuliah : Economics Theory
Kode : MPB034301
Dosen Pengasuh : Andi M. Lutfi, SE, Msi
Class : Manajemen / Akuntansi
THEORY EXPLANATION
Major Assignments No. 09
Table A : List of Participants
Rebutter
No. Economic Theories 1st Explanation by : 2nd Explanation by : 3rd Explanation by : Notes
A B
1 Cobweb theory Aldi Azhar Khoiruddin Bagus Putra Pratama
2 Cournot competition Azhar Khoiruddin Bagus Putra Pratama Bayu Nugraha Dwi Putra
3 Creative destruction Bagus Putra Pratama Bayu Nugraha Dwi Putra Bela Tri Ayu
4 DSGE models Bayu Nugraha Dwi Putra Bela Tri Ayu Berliana Sari Hidayat
5 Ecological model of competition Bela Tri Ayu Berliana Sari Hidayat Dicky Simbolon
6 Efficient market hypothesis Berliana Sari Hidayat Dicky Simbolon Donny Andryan
7 Evolutionary economics Dicky Simbolon Donny Andryan Eva Adytyas Cahyani
8 Solow Growth Model Donny Andryan Eva Adytyas Cahyani Fajri Rahman Benvia
9 Financial accelerator mechanism Eva Adytyas Cahyani Fajri Rahman Benvia Firda Zahrotul Nur Rahmatiani
10 Financial instability hypothesis Fajri Rahman Benvia Firda Zahrotul Nur Rahmatiani Fitri Ayu Lestari
11 Goodhart's law Firda Zahrotul Nur Rahmatiani Fitri Ayu Lestari Hotminar Santa Maria Harahap
12 Hotelling's rule Fitri Ayu Lestari Hotminar Santa Maria Harahap Iqbal Haq
13 Income Inequality Theories Hotminar Santa Maria Harahap Iqbal Haq Jihan Amir Simangunsong
14 Khazzoom–Brookes postulate Iqbal Haq Jihan Amir Simangunsong Milleni Nurizatillah Undaresta
15 Kinetic exchange models of markets Jihan Amir Simangunsong Milleni Nurizatillah Undaresta Muhammad Rizki
16 Lewis Turning Points Milleni Nurizatillah Undaresta Muhammad Rizki Nadhila Adha Aryanda Putri
17 Marxian Labor Theory of Value Muhammad Rizki Nadhila Adha Aryanda Putri Naena Khamisya Akmad
18 Modern monetary theory Nadhila Adha Aryanda Putri Naena Khamisya Akmad Nicco Putri Sanjaya Chua
19 Monetarist Theory Naena Khamisya Akmad Nicco Putri Sanjaya Chua Novi Koesty Manurung
20 New Growth theory Nicco Putri Sanjaya Chua Novi Koesty Manurung Nuraslina
21 Non-equilibrium economics Novi Koesty Manurung Nuraslina Sintia Anggriani Moningka
22 Lucas critique Nuraslina Sintia Anggriani Moningka Sri Wahyuni
23 Steady state economics Sintia Anggriani Moningka Sri Wahyuni Tengku Rere Pricilla Putri
24 Supply-side economics Sri Wahyuni Tengku Rere Pricilla Putri Norilia Hardani
25 The agency problem/ agency theory Tengku Rere Pricilla Putri Norilia Hardani Ramot Govindo
26 The Gordon-Schaefer model Norilia Hardani Ramot Govindo The Liadi Mayogi
27 The Shutdown Rule Ramot Govindo The Liadi Mayogi Aldi
28 The structural theory of Inflation The Liadi Mayogi Aldi Azhar Khoiruddin

Econ. Theories template - Andi M. Page 3

 Academic Class : Economics Theory
FE UNIBA - 1st semester, 2020/2021
Lectures/Class Mgr. : Andi M. Lutfi
email : andi_mulyadi_lutfi@yahoo.com
Example
Mata Kuliah : Teori Ekonomi Rec. date : .............. 2020
Dosen Pengasuh : Andi M. Lutfi, SE, MSi. Posted date : .............. 2020
Prodi : Management - Acounting Assignment : Individual - Rollover

Major Assignments (HW) no. 09

Group no : (leave it blank)

Assigned to ;
1. (Name 1)
2. (Name 2) Economic Theories
3. (Name 3) A brief Profile
4. (Name of Rebutter 1)
5. (Name of Rebutter 2)

Signature
1. Rational Choice theory

Guiding questions Descriptions Ref.

… the theory / Rational choice theory is developed to model human decision making, especially in the
hypothesis / model context of microeconomics, where it helps economists better understand the behaviour of
A was created to a society in terms of individual actions as explained through rationality, in which choices 1.
address the problem are consistent because they are made according to personal preference.
of .. ?
.. Who created or Adam Smith is considered the originator of rational choice theory External link. His essay
B developed those “An Inquiry into the Nature and Causes of the Wealth of Nations,” from 1776, proposed 2.
theories ? human nature’s tendency toward self-interest resulted in prosperity.

Rational choice theory then assumes that an individual has preferences among the
available choice alternatives that allow them to state which option they prefer. These
.. Break it down !/ preferences are assumed to be complete (the person can always say which of two
C how the theory alternatives they consider preferable or that neither is preferred to the other) and 3.
works ? transitive (if option A is preferred over option B and option B is preferred over option C,
then A is preferred over C).

.. briefly describe
the future Human social action and interactions are complex, and many others theories may provide
D application of the better guides to how these take place. The future of RCT is uncertain. 4.
theory !
.. are there any
critiques on the Theorists of rational choice argue that macro level structures and institutions can be
theory ?, are there explained from the models of individual social action. But there are problems of
E 5.
any competing / aggregation of individual to societal level phenomena. These same difficulties also exist in
alternative theories well developed economic models.
?

Key words : decision making model, rationality, complete & transitive preference, self-interest.

Econ. Theories template - Andi M. Page 4

 Academic Class : Economics Theory
FE UNIBA - 1st semester, 2020/2021
Lectures/Class Mgr. : Andi M. Lutfi
email : andi_mulyadi_lutfi@yahoo.com

Reff and Notes :

1.
a. See at ... https://www.britannica.com/topic/rational-choice-theory
b. Rational choice theory is an important concept because it helps explain how individuals make decisions.
According to the definition of rational choice theory, every choice that is made is completed by first
considering the costs, risks and benefits of making that decision. Choices that seem irrational to one
person may make perfect sense to another based on the individual’s desires.
Rational choice theory can apply to a variety of areas, including economics, psychology and philosophy.
This theory states that individuals use their self-interests to make choices that will provide them with the
greatest benefit. People weigh their options and make the choice they think will serve them best.
How individuals decide what will serve them best is dependent on personal preferences. For example, one
individual may decide that abstaining from smoking is best for them because they want to protect their
health. Another individual will decide they want to smoke because it relieves their stress. Although the
choices are opposite, both individuals make these choices to get the best result for themselves.
https://www.onlinemswprograms.com/social-work/theories/rational-choice-theory/

2. See at ... https://www.britannica.com/topic/rational-choice-theory..

3. Rational choice theory, also known as theory of rational choice, choice theory or rational action theory, is a
framework for understanding and often formally modeling social and economic behavior.
The basic premise of rational choice theory is that aggregate social behavior results from the behavior of
individual actors, each of whom is making their individual decisions.
The theory also focuses on the determinants of the individual choices (methodological individualism).
Rational choice theory then assumes that an individual has preferences among the available choice
alternatives that allow them to state which option they prefer. These preferences are assumed to be complete
(the person can always say which of two alternatives they consider preferable or that neither is preferred to
the other) and transitive (if option A is preferred over option B and option B is preferred over option C, then A
is preferred over C).
The rational agent is assumed to take account of available information, probabilities of events, and potential
costs and benefits in determining preferences, and to act consistently in choosing the self-determined best
choice of action.
In simpler terms, this theory dictates that every person, even when carrying out the most mundane of tasks,
perform their own personal cost and benefit analysis in order to determine whether the action is worth
pursuing for the best possible outcome.[2] And following this, a person will choose the optimum venture in
every case.
This could culminate in a student deciding on whether to attend a lecture or stay in bed, a shopper deciding to
provide their own bag to avoid the five pence charge or even a voter deciding which candidate or party based
on who will fulfill their needs the best on issues that have an impact on themselves especially
https://en.wikipedia.org/wiki/Rational_choice_theory

4. See. 5.b. below. .... Human social action and interactions are complex, and many of the theories recently
developed may provide better guides in the future on how these take place.

Econ. Theories template - Andi M. Page 5

 Academic Class : Economics Theory
FE UNIBA - 1st semester, 2020/2021
Lectures/Class Mgr. : Andi M. Lutfi
email : andi_mulyadi_lutfi@yahoo.com

5. Some of the RCT weaknesses are:

a. Problems associated with inadequate information and uncertainty. This may make it difficult for
individuals to make rational decisions. As a result, they may rely on other ways of making decisions.
b. Human social action and interactions are complex, and many of the theories recently developed may
provide better guides in the future on how these take place.
c. Theorists of rational choice argue that macro level structures and institutions can be explained from the
models of individual social action. But there are problems of aggregation of individual to societal level
phenomena. These same difficulties exist in well developed economic models.
d. Norms and habits may guide much action, and once these take root people may not question them but use
them to pursue meaningful social action.
e. One problem of RCT is that some theorists argue that almost everything humans do is rational, even
philanthropy and self-sacrifice. By expanding to include all forms of action as rational, action that is non-
rational or irrational becomes part of the model. By including every possible form of action in rational
choice, it is not clear how the standards of what is rational and what is not are constructed.
http://arabianjbmr.com/pdfs/NG_VOL_1_3/9.pdf

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