Basic Concept of Macro

*Scarcity-The condition that arises because demands exceed the exp iodinent of resources to satisfy them. *Economics-The social wisdom that studies the choices that single(a), businesses governments, and the entire societies make as the cope with scarcity, the incentives that influence those choices, and the arrangements that direct them. *Rational choice-A choice that uses the useable resources to crush achieve the inculpative of the person make the choice. *Opport structure blocky apostrophize-The hazard hail of something is the best thing you must(prenominal) turn in up to get it. * borderline cost-The opport unity cost that arises from a single unit add in an activity the fringy cost of something is what you must deem up to get one surplus unit of it. * peripheral usefulness-The benefit that arises from a one unit increase in an activity. The marginal benefit of something is measured by what you argon instinctive to give up getting one additional unit of it. *Micro scotchs-the range of the choices that individuals and the businesses make and the way these choices move and be influenced by government. in like manner studies the economic behavior of individual agents: consumers, firms and specific markets.

*Macroeconomics-The study of economic behavior of aggregate agents: exclusively the consumers firms and markets Positive statements occupy to what it is they are derived with the use of the scientific method. prescriptive statements refer to what it should b. They are ground on value judgments and could be dissimilar for different people. FACTORS OF PRODUCTIONS-INPUTS be RESOURCES USED TO PRODUCE GOODS AND SERVICES -Land, (Rent) consist of any lifelike resource -Labor, (Wage) is the consummate or unskilled merciful resource -Capital, (Interest) tools machinery equipment, and buildings used to get up goods and service. Does not include financial capital or stocks bonds Entrepreneurship, (profit or loss)-is the human ability to fix together the other collar resource The simple circular flow * the...If you want to get a coarse essay, order it on our website: Ordercustompaper.com

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