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  • Essay / The production function and the theory of economics, by...

    This was based on the idea that capital can be measured and aggregated. This was called the Cambridge Controversy and also became known as the Cambridge, England Post (1956). This allowed her to make several trips to China to observe their economic outlook of 1958, the Cultural Revolution of 1969, and economic management of 1976. She explains how the expected future rate of production is associated with a capital good and prices and expected future costs, and then, if we take into account the interest rate, we can value the capital good as a discounted stream of future profit that we can earn. Through this we are able to know the main objective of the production function, which is to show how wages and interest rate are determined by the technical state and ratio of factors (August 25, 2014) . With her knowledge of the production function, she became invaluable in analyzing the Chinese economy as she understood the concepts and could apply them. She subsequently produced numerous works in 1980 such as: Collected Economic Papers 1951-79 and Economic Philosophy.