Chap. 2: Interesting Information

A. (Calculus)
  • The rate of change of the gap (disparity) of the individuals’s performances through out lifetime.
B. (Stats)
  • The mean (average or expected value) of the correlations (degree of strength of relationship or link). The correlations has its own probability distribution function (pdf)
  • The mean (average or expected value) number of events that cause another one and their correlation
C. (Microeconomics) Realistic (Alternative) definition of the marginal utility.           Example with apples.
  • The skin represents 0.1% of the apple’s total volume. That additional (marginal or extra) amount of nutritious value . The skin of the apple represents is insignificant in terms of marginal utility, and implicitly the nutritious value.
D. Considering time as a good (resource), as an dependent variable. Leisure time is a good.
E.
  • (Calculus)
    • Other use of the derivative. To measure the words
    • Similarly, using integrals in historical events (the summation,
  • (Stats)
    • The conditional probability is used to represent the cause and effect relationship
  • (History)
    • Analogy between one’s own life time and historical periods
F. (Metaphysics)
  • The materialization of thought.
  • Similarly, the dematerialization of things.
G. Similar to the previous section F.
  • Using the concept of derivatives like in the infinite mirror effect, the reflection effect, to explain a process repeated (iterated) an infinite number of times.
H. (Core)
  • The fundamentals are Link, Categorize Definitions
  • Link. Trying as much as possible to link [abstract] concepts such as derivative, materialization
  • Categorize. 
I.  Brainstorm. List all ideas.
  • Clarity. Subjectivity
  • (Econ), normal, positive, negative, absolute infinite
  • (Calculus)
  • Real, irrational
  • (Psy)
    • Behavior, mood, stamina, judgement, cognition.
  • (Stats)
    • Standard deviation, average, expected value
  • Time, future, value
J. (Calculus)
  • The inverse function, such as f'(x) gives. It is the opposite way of deductive thinking. It is also known as reverse psychology.
I.  (Social)
  • An incentive is like a trap (or a fish rod). It may be a self suggestion.
K. (Calculus)
  • The range (or limits) should be numerical. But they do no have to be cardinal. The ycould be ordinal.
L. (Psychology)
  • A deductive thinking process can be started from an empirical observation.
M. (Metaphysics)
  • Time can be stored. Time is a material. Time exists
N. (Metaphysics)
  • Everything is Binary System Based
O.  Various.
  • A mouse click is an opportunity cost.
  • (psychology)
    • Classic conditioning

Chap. 1: Starting from the beginning

Chapter I. Everything can be generalized.

It is often interesting to observe that a lot of things in nature can be correlated. In fact, we often make analogies without even noticing.

Now, the purpose of these theorical analysis is to generate theories that would apply to almost everything. We will use logical deductions. This is similar to metaphysics. Steven Hawkings tried to formulate a theory that would explain everything. How is that even possible? He failed, however, one can always challenge the impossible. The question is how? Where to start, where to begin?

Logically, if we start from small details, it will take forever to solve this. It’s like starting from a tree’s tiny branch. We should start from the root. Thus meaning starting from the most general first.  Now, what is the most general? A simple theory we have all in mind. The chicken and the egg. Who came first? Why this? Because there nothing else complex than that. The more complex it is, the more precise it is. The degree of simplicity of the chicken and the egg examplecan be compared to really basic 1+1=2 math. I will now later this analogy.

So basically, what is the chicken and the egg says about? Certainly not talking about the animal. Try to guess. Read what I have wrote above. Basically, I was trying to come up with the simplest possible concept. It is first idea of the Theory.  Now, watch carefully because things are going to speed up.

Why did we came with the chicken? What is relevant in all this? Because, there is a cause and effect relationship. Well, there is something that came first that led to another event. X triggers Y. Therefore, X and Y are related.

If one can understand this simple concept of the chicken, one can understand cause and effect relationship.

Now, there is only one variable in this analogy. To be clear, an analogy is putting any two situations that demonstrate similar tendacies. One is used to explain another. The concept of analogy is the utterly most important, as we base our research on it.

We can also distinguish two other definitions. A factor isn’t the same thing as a variable. Why? The difference between the two is that a factor is more broad (more simple, higher level of importance, lower level of accuracy) while a variable is more used in a given situation (for example, chicken is a variable, uncertainty is a factor). Again factors are extremely important because they are useful.

We have found our first concept, the cause and effect relationship. This implies that one event will necessarily trigger another. [Things starts to get complex.] This introduces a new concept, the concept of probability. [We have to remind ourselves that a concept is broader than a factor.] What are the chances that this event will likely be possible to happen? What are the chances that X triggers Y? That is our second Idea.

An Economic Perspective

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