Macro Policies

Chapter 1 Microeconomics: The decision making by individuals, businesses, industries, and governments. Macroeconomics: The broader issues in the economic system much(prenominal) as inflation, unemployment, and national output of goods and services. Ceteris paribus: Assumption used in economics (and other disciplines as well), where other relevant factors or variables are held unvarying. Efficiency: How well resources are used and allocated. Do people get the goods and services they want at the last(a) practical resource cost? This is the chief focus of skill. comeliness: The loveliness of various issues and policies. Chapter 2 WHAT IS ECONOMICS ABOUT? Economics is unaffectionate into two broad categories: microeconomics and macroeconomics. Microeconomics deals with individuals, firms, and industries and how they make decisions. Macroeconomics focuses on broader economic issues much(prenominal) as inflation, employment and unemployment, and economic growth. Economics uses a represent approach, creating simple models that hold all other relevant factors constant (ceteris paribus). Economists and policymakers often face a tradeoff between expertness and equity. Economists have much to say about efficiency. Scarcity: Our numberless wants clash with limited resources, leading to scarcity.

Everyone faces scarcity (rich and poor) because, at a minimum, our time is limited on earth. Economics focuses on the stock allocation of scarce resources to satisfy unlimited wants. probability be: The future(a) best alternative; what you give up t o do something or purchase something. For ex! ample, to watch a movie at a theater, there is not just the monetary cost of the tickets and refreshments, just the time involved in watching the movie. You could have been doing something else (knitting, golfing, hiking, or studying economics). Adam Smith: Invisible Hand theory account IDEAS OF ECONOMICS Choice and scarcity force tradeoffs. Opportunity costs master our lives. Rational...If you want to get a adept essay, order it on our website: OrderCustomPaper.com

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