Microeconomics

September 13th MicroEconomics Chapter 1 What is frugals? - adopt of how association manages its scarce resources. canonical economic Concepts * Scarcity: Society has less to offer than tidy sum offer to consume(Society has limited resources, people face tradeoffs.) We want society to be Efficient yet Equal and fair. (Get the most expose of resources and emit evenly) However, these two goals conflict usually. Ex: High income revenue enhancement map: to be equal (take money from rich, give to poor) If a businessman who is efficient and makes a lot of money, is taxed a lot, he leave not want to work anymore because he strikes taxed in like manner much. Less incentive to work. (Underutilization of kind-hearted resources) Opportunity make up (Remember this eternally and understand!!) * The adjoining best alternative forgone (given up) in allege to obtain a certain good or service. (What you fill to buy is your choice, what you lead to give up is your opportunity cost.) Because of scarcity you need to have a choice and an opportunity cost because you sternt have both Market: A sit where buyers and sellers interact to exchange goods and services. Microeconomics: the study of how households and firms make decisions to interact in markets.

Macroeconmics: study of economy-wide phenomenon (Ex: Inflation, unemployment, economic growth) Economic Model: Economists use models to detect how an economy works. Assumptions are made so that details can be omitted to allow us to see what is truly important. (To simplify models, so they dont have to be s o enormously complicated) Economists use! graphs and equations to construct models (No equations in this class...) Scientific progress: Phenomenon -> surmisal -> Hypotheses -> Observations -> Verification (or rejection) Circularflow diagram: A model to fork out(p) how dollars flow through market among households and firms in the economy (Insert peak flow Figure 1-4) (factors is hours of work*, payments for = salaries*) 4 factors of...If you want to set about a full essay, order it on our website: BestEssayCheap.com

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