STUDY OF INTELLECTUAL CONNECTIONS BETWEEN ECONOMIC CONCEPTS
Journal: Journal Association 1901 SEPIKE (Vol.1, No. 09)Publication Date: 2015-06-30
Authors : Igor Romanenko;
Page : 175-177
Keywords : law of economic concepts subordination;
Abstract
The law of economic concepts subordination states that under condition of any strategic alternatives (growth, limited growth or reduction) any economic system tends to come in the state, which meets such requirements: 1) growth rate of capital cost is higher than the growth rate of hiring staff; 2) growth rate of all resource costs is over the growth rate of capital cost; 3) growth rate of sales is over the growth rate of total costs; 4) revenue growth is over the growth rate of sales; 5) growth rate of market capitalization is over the profit growth. The subordination of economic concepts is universal, i.e. valid in all socio-economic systems based on free labor. An ordered set of economic concepts and intellectual connections between them verifies various economic theories.
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