Business Directory defines economic power as ＂conditions of having sufficient productive resources at command that give the capacity to make and enforce economic decisions, such as allocation of resources and apporti...Business Directory defines economic power as ＂conditions of having sufficient productive resources at command that give the capacity to make and enforce economic decisions, such as allocation of resources and apportioning of goods and services＂. This qualitative definition may be sufficient for general discussions, but it does not offer any quantitative measurements for management and control. Is there a way to measure economic power for analysis and synthesis of economic systems in this 21st century？ This paper answers this question by introducing a set of quantitative terms from the field of electrical engineering, used in power measurement and control of electrical systems. Circuit theory concepts are introduced to show how the relationship between cash and cash flow in finance is analogous to that of electric charge and electric current and how education level, as economic potential, is analogous to electrical potential that causes current to flow in a circuit. An individual is identified as the basic cash flow source in the economy. Circuit models for an individual as well as a typical production facility are developed and demonstrated with an example. Equations for the measurement of economic power, losses, efficiency, and power factor are presented. It is shown that the individuals are the basic cash flow sources and producers of economic power.展开更多
文摘Business Directory defines economic power as ＂conditions of having sufficient productive resources at command that give the capacity to make and enforce economic decisions, such as allocation of resources and apportioning of goods and services＂. This qualitative definition may be sufficient for general discussions, but it does not offer any quantitative measurements for management and control. Is there a way to measure economic power for analysis and synthesis of economic systems in this 21st century？ This paper answers this question by introducing a set of quantitative terms from the field of electrical engineering, used in power measurement and control of electrical systems. Circuit theory concepts are introduced to show how the relationship between cash and cash flow in finance is analogous to that of electric charge and electric current and how education level, as economic potential, is analogous to electrical potential that causes current to flow in a circuit. An individual is identified as the basic cash flow source in the economy. Circuit models for an individual as well as a typical production facility are developed and demonstrated with an example. Equations for the measurement of economic power, losses, efficiency, and power factor are presented. It is shown that the individuals are the basic cash flow sources and producers of economic power.
