Economics As An Area Of Study And Research

Ten Principles of Economics Thinking Like an Economist Interdependence and the Gains from Trade The study of economics is guided by a few big ideas. Economists view the world as both scientists and policymakers. The theory of comparative advantage explains how people benefit from economic interdependence.

In order to fully understand what economics is, t. For example, economics is about the money that we make and what we choose to do with it s, and it’s not an economist’s job to tell people what stocks and bonds they should be investing in. “ The Economist deal with politics and current events and are not specifically economic-related, despite the title of the publication. But there is a subfield of economics known as political economy”

c. quantity demanded of a taxed good in response to a change in the tax rate

Microeconomics and macroeconomics concepts aide in the understanding on how they affect the shifts of supply and demand affect equilibrium price and quantity. Microeconomics focuses on supply and demand (Colander, 2010). A company would look at ways to increase production that could decrease their prices compared to competitors. This would adjust the equilibrium price of products by increasing the quantity that is available. This would allow the company the ability to pass price savings to consumers. Macroeconomics is used as the economy changes such as with inflation (Colander, 2010). Inflation would cause a company to have increase cost of materials in producing their product. This creates a change in quantity to be provided as supply has to be adjusted to meet the decrease of demand due to the economy affects on equilibrium price.

Microeconomics deals with the individual parts in the economy and how they relate to each other. Macroeconomics deals with the totals of these parts in our economy

Anderson, K. (2013). The Difference Between Macro and Microeconomics | Mint.com. Retrieved October 13, 2013, from https://www.mint.com/the-difference-between-macro-and-microeconomics/

Economics is the branch of knowledge concerned with the production, consumption, and transfer of wealth. Economics can even be used a few different ways. They are the study of scarcity, the study of how people use resources, or the study of decision-making. One of the central tenets of economics is that people want certain things and will change their behavior to get those things according to American Economic Association. The economic study ranges from the very small to the very large. Much of economics involves the use of data gathered by governments, businesses, or in the laboratory to test the hypotheses about whether a certain program, event, or incentive will have the expected effect. Our nation is affected by economics in the way that you work, spend money, eat, simply just how you live on a regular

11.Macroeconomics is best described as the study of A) very large issues.B) the choices made by individual households, firms, and governments.C) the nation's economy as a whole.D) the relationship between inflation and wage inequality.Points Earned: 0.4/0.4Correct Answer(s): C

How do the concepts of microeconomics help you understand the factors that affect shifts in supply and demand on the equilibrium price and quantity?

How do the concepts of microeconomics help you understand the factors that affect shifts in supply and demand on the equilibrium price and quantity?

Understanding the concepts of macroeconomics and microeconomics help understand factor that affects shifts in supply and demand because now one can see with clarity what are the categories and what those categories are, the ones influence supply and demand and how this same factor may bring equilibrium.

In understanding economics first summarize what is economics. No universally definition of economics. Although it defined as the study of how individuals and groups make decisions with limited resources, coordinate their wants and desires, given the decision mechanisms, social custom, and political realities of the society. Economic are operative in aspect of lives, market forces of goods sold in a market but supply and demand also used to analyzes situation in which economic forces operate. In addition to the study of

Understanding how the flow of funds falls in line with knowing what transactions take place between sellers and buyers. It is best to also understand where the monies sources come from, how the money flows throughout the system and how the funds are used; and how to make the right choices based on if the resource of supplies in greater than the need to have the product no matter what the cost will be; this process is known as elasticity or inelasticity (2007). Examining how these behaviors and decision process are broken down into branches of economics is known as microeconomics. All the components that allocate how decisions are made for resources affects the need for supply and demand. Particularly, microeconomics deals with market breakdown. An example can be when the market does not resourcefully arrange or distribute services and goods to the consumer (2007). Inefficient organization of production will result in an unsatisfied buyer being able to purchase their necessities. However, if a microeconomic production is doing well, it will avoid difficult circumstances and profit in all aspects.

Macroeconomics analyzes the overall economy and the issues affecting it such a growth, inflation and unemployment, where microeconomics only studies how those issues affect individual markets and how they make decisions about allocating scarce resources.

The article that will be used for this analysis is “Supply, demand, and the Internet-economic lessons for microeconomic principles courses” by Fred Englander and Ronald L. Moy. There will be definitions for the following economics, microeconomics, Law of supply and the Law of demand. Another subject that will be discussed is the identification of factors that lead to the changes in supply and demand. In order to better understand what is being discussed going to start with the definitions.