Share This Article:

Economic Definition of seventh rule of complexity. Defined.

Offline Version: PDF

Term seventh rule of complexity Definition: The seventh of seven basic rules of the economy. It is the observation that the world is complex, that every action has direct and often intended consequences and indirect and probably unintended effects (that is, cause and effect). A few of the more noted illustrations of this seventh rule are the circular flow (especially the expenditure multiplier) and market failures (especially externalities).

 

« seven rules | severance tax »

Permalink: http://glossary.econguru.com/economic-term/seventh+rule+of+complexity

Alphabetical Reference to Over 2,000 Economic Terms