Microeconomics

September 13th MicroEconomics Chapter 1 What is frugals? - deal of how confederacy manages its scarce resources. base economic Concepts * Scarcity: Society has less to offer than peck offer to kick in(Society has limited resources, people face tradeoffs.) We want society to be Efficient yet Equal and fair. (Get the most bulge step forward of resources and emit evenly) However, these two goals conflict usually. Ex: High income impose 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 tender resources) Opportunity make up (Remember this eternally and understand!!) * The succeeding(prenominal) best alternative forgone (given up) in allege to obtain a certain good or service. (What you fill to buy is your choice, what you recognise to gi ve 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 move to exchange goods and services. Microeconomics: the study of how households and firms make decisions to interact in markets.

Macroeconmics: study of sparing-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 so tremendously complicated) Economists use graphs and equations to cons truct models (No equations in this class...)! Scientific progress: Phenomenon -> possible action -> Hypotheses -> Observations -> Verification (or rejection) Circularflow diagram: A model to fork out how dollars flow through market among households and firms in the economy (Insert board flow Figure 1-4) (factors is hours of work*, payments for = salaries*) 4 factors of...If you want to go bad a full essay, order it on our website: OrderEssay.net

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