Microeconomics

September 13th MicroEconomics Chapter 1 What is frugals? - pick come to the fore of how ships company manages its scarce resources. underlying economic Concepts * Scarcity: Society has less to offer than mass offer to capture(Society has limited resources, people face tradeoffs.) We want society to be Efficient yet Equal and fair. (Get the most unwrap of resources and emit evenly) However, these two goals conflict usually. Ex: High income revenue 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 human resources) Opportunity make up (Remember this eternally and understand!!) * The contiguous best alternative forgone (given up) in allege to obtain a certain good or service. (What you fill to buy is your choice, what you maintain hold of 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 move to exchange goods and services. Microeconomics: the study of how households and firms make decisions to interact in markets.

Macroeconmics: study of saving-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) Econo! mists use graphs and equations to construct models (No equations in this class...) Scientific progress: Phenomenon -> conjecture -> 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 mailing flow Figure 1-4) (factors is hours of work*, payments for = salaries*) 4 factors of...If you want to get a full essay, order it on our website: BestEssayCheap.com

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