Notes for a macroeconomics course.

CHAPTER 1. THE NATURE OF ECONOMICS I. Definition stinting science is a social science concerned with the efficient utilization of contradictory resources, in raise to maxim eachy satisfy societys un express mail 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 get at involves opportunity costs or tradeoffs. D. Economics helps the citizenry sympathize how the marketplace, the government, and world politics function. E. Economics helps the voters give away wise human race choices at elections. F. Economics helps plenty in their personal and channel decision-making. IV. Types of Economics A. Macroeconomics A study of economic aggregates and poli cies on the national 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. tenableness Assumption Rational people will not make decisions that will begin them to be worse off than before. VI. The inconspicuous Hand Concept The thought process that while the participants of the market pursue their self interest, they automatic solelyy put up the unexclusive welfare. Thus, government must play only a limited role. VII. The Methodology of Economics A. Theories General statements about cause and issuance in economic life. B. Models Formal statements of theories showing the relationship amid two or more variables. C. Inductive Logic moving 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 Descri! bes 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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