What are the four simplifying assumptions we make for changes in income?

What are the four simplifying assumptions we make for changes in income? What are the basic assumptions of economics? Neo-classical economics works with three basic assumptions: People have rational preferences among outcomes that can be identified and associated with a value. Individuals maximize utility (as consumers) and firms maximize profit (as producers). People act independently … Continue reading What are the four simplifying assumptions we make for changes in income?