Notes for a macroeconomics course.

CHAPTER 1. THE NATURE OF ECONOMICS I. Definition frugal science is a social science concerned with the efficient utilization of conflicting resources, in identify to maxim eachy satisfy societys un extra wants. II. Functions of political economy The production, distribution, and expending of goods and services. III. Benefits of Economics A. Most historical, social, and economical 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 pay involves opportunity costs or tradeoffs. D. Economics helps the citizenry transform how the trade, the government, and world politics function. E. Economics helps the voters make wise frequent choices at elections. F. Economics helps plenty in their personal and trading decision-making. IV. Types of Economics A. Macroeconomics A study of economic aggregates and policies on the 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. modestness Assumption Rational people will not make decisions that will begin them to be worse off than before. VI. The nonvisual Hand Concept The thought process that while the participants of the market pursue their self interest, they automatic in ally put up the general welfare. Thus, government must play only a limited role. VII. The Methodology of Economics A.

Theories General statements about cause and put in economic life. B. Models Formal statements of theories showing the relationship bet ween two or more variables. C. Inductive Lo! gic go 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: OrderEssay.net

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