Economic calculation
From Wikipedia, the free encyclopedia
Economic Calculation is, in economics science, the comparison of costs versus benefits to determine if a gain or loss will occur. According to Richard J. Marbury, it can be defined also as "The process of an individual deciding if the benefits of a transaction or a job are worth the costs to him." (Whatever Happened to Justice)
Economic calculation permits to calculate whether a subject can have a gain, a lose, or have no profit at all. For example, if an individual is buying a videogame, he would calculate whether this game would give him entertainment enough it would be worth its price. Another example could be the evalutation of the reasonability of or the convenience about the acquiring of paper, in the event that the paper available will last for the rest of the year. In such a case, economic calculation can be used to decide that the acquiring would be a waste of money.
Economic calcuation is used in a wide range of fields. A more recent and larger example would be Hurricane Katrina. After it hit the Lousiana and Mississippi area, the United States government had to choose whether or not to rebuild places like New Orleans: in this case, however, economic calculation can be paired to political or social evaluations.
