The IV Theory

The IV theory is a new theory that focuses on the quality and intensity of socioeconomic development and the substitutability and structure of factors. With the IV theory, we are now able to abstract complex social activities into simple mathematical functions. We set up the models of IV theory based on the definition, and explain the hypotheses of the theory. Then the IV functions are created on two different scenarios of resource conditions. In the end of this chapter, we obtain the IV curve based on the LDR diagram.