Macro Policies

Chapter 1 Microeconomics: The decision making by individuals, businesses, industries, and governments. Macroeconomics: The broader issues in the saving 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 unbroken. Efficiency: How well resources are used and allocated. Do people get the goods and services they want at the last(a) contingent resource cost? This is the chief focus of skill. comeliness: The honor 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 growt h. Economics uses a stylize approach, creating simple models that hold all other relevant factors constant (ceteris paribus). Economists and policymakers often face a tradeoff between strength and equity. Economists have much to say about efficiency. Scarcity: Our immeasurable 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 fund allocation of scarce resources to satisfy unlimited wants. luck be: The future(a) best alternative; what you give up to do something or purchas e something. For example, to watch a movie a! t a theater, there is not just the monetary cost of the tickets and refreshments, except the time involved in watching the movie. You could have been doing something else (knitting, golfing, hiking, or studying economics). Adam Smith: Invisible Hand hypothesis account IDEAS OF ECONOMICS Choice and scarcity force tradeoffs. Opportunity costs master our lives. Rational...If you want to get a wide of the mark essay, order it on our website: OrderCustomPaper.com

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