Notes for a macroeconomics course.

CHAPTER 1. THE NATURE OF ECONOMICS I. Definition sparing science is a social science concerned with the efficient utilization of contrary resources, in coordinate to maxim eachy satisfy societys un express wants. II. Functions of economical science The production, distribution, and expending of goods and services. III. Benefits of Economics A. Most historical, social, and economic changes have economic backgrounds. B. Governments are more and more relying on economists for decision-making. C. Economics teaches us that in the real valet de chambre every decision we arrest involves opportunity costs or tradeoffs. D. Economics helps the citizenry construe how the securities industry, the government, and world politics function. E. Economics helps the voters draw wise semi semipublic choices at elections. F. Economics helps plenty in their personal and trade decision-making. IV. Types of Economics A. Macroeconomics A study of economic aggregates and polic ies on the subject field level, including income, output, the price level, and trade. B. Microeconomics A study of how consumers, households, firms, markets, and industries make their economic decisions. V. reason Assumption Rational people will not make decisions that will begin them to be worse off than before. VI. The out of sight Hand Concept The thought process that while the participants of the market pursue their self interest, they automatic all toldy put up the public welfare. Thus, government must play only a limited role. VII. The Methodology of Economics A.

Theories General statements abou t cause and outcome in economic life. B. M! odels Formal statements of theories showing the relationship surrounded by two or more variables. C. Inductive Logic pathetic from facts to principles (Facts-Theories-Policies) D. Deductive Logic Moving from a hypothesis to its proof. E. ceteris paribus - all other things being equal assumption VIII. Approaches to Economics A. descriptive/ Positive Economics Describes what exists and how it works. B. prescriptive/ Applied Economics Analyzes the outcomes of economic behavior, makes value judgments, and suggests... If you want to get a full essay, order it on our website: OrderCustomPaper.com

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