...The study of microeconomics focuses on the behaviors and goals of individuals, firms, and government agencies that actually compose the larger economy. It is essential in the everyday life. Understanding the principles and objectives of microeconomics help towards policy making, and solutions for unemployment. The following are the five most important lessons I believe everyone should take away from this course. The first lesson to take away from microeconomics is how the limits to output are determined and how the interplay of market forces and government intervention utilize and expand those limits. For example, scarcity is an imbalance between available resources and our wishlist for those resources. The resources available for producinging...
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...Professor Carter December 12, 2011 Microeconomics In My Daily Life Throughout my life, I have always been reading and hearing about economic issues and concepts, but I never thought about the impacts of economic models on my personal life. Before learning about microeconomic concepts, I always thought that a course in the field of Economics, would teach me theories that only apply to the economy of a nation as a whole and not to an individual’s life. However, there were a lot of concepts throughout this course that I found relative to my personal life. Among all the concepts that I have learned in the Microeconomics course, “Opportunity Cost”, “Sunk Cost”, and “Supply and Demand” have the most impact on my daily life. “Choice and Opportunity Cost” is one of the most important concepts of Microeconomics that I found it relative to my everyday life. Similar to many other students, limited time during the school semester, forces me to make choices about what to study, when to study, and how to estimate the opportunity cost of every choice. Applying opportunity cost concept in my day-to-day life helps me better schedule my study time. For instance, I usually choose to study during weekdays because the opportunity cost of studying on these nights is lower than studying on Friday or Saturday nights, when usually more exciting events are happening. On the other hand, if my alternative on weekend is to stay home and organize my closet and do my laundry, I would choose to study...
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...many things which take places. They include performance, organization, activities and decision making. Economics, like many other subjects in life, can be studied at different levels. These things can be conducted at individual level, or at a common level. What we mean by individual level is they may be by individual company, firm or an entity business person. The way the different entities behave may differ due to their different demands and supply. What we mean by decision made at a common level is that it looks at the entire activities and behavior of the entire economy. This may be at national level, regional level or even global level. Difference between microeconomics and macroeconomics Economics is primarily split into two major sections, this are the macroeconomics and the microeconomics. The two are so much connected. Adjustment in one affects the other. Both of them work together in the world of economy. The macroeconomics can be considered to be the summation of microeconomics. However there exists a difference in the two. We shall be discussing on the distinction between the two in the subsequent few paragraphs. To begin with, the naming denotes that there is a difference between macro and microeconomics.’ macro’ stands for large in Greek, while 'micro’ stands for small in Greek. This is to explain that microeconomics covers the economy of smaller regions such as a firm, a company or even individual businesses. Macroeconomics is concerned with a larger area...
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...Throughout my life, I have always been reading and hearing about economic issues and concepts, but I never thought about the impacts of economic models on my personal life. Before learning about microeconomic concepts, I always thought that a course in the field of Economics, would teach me theories that only apply to the economy of a nation as a whole and not to an individual’s life. However, there were a lot of concepts throughout this course that I found relative to my personal life. Among all the concepts that I have learned in the Microeconomics course, “Opportunity Cost”, “Sunk Cost”, and “Supply and Demand” have the most impact on my daily life. “Choice and Opportunity Cost” is one of the most important concepts of Microeconomics that I found it relative to my everyday life. Similar to many other students, limited time during the school semester, forces me to make choices about what to study, when to study, and how to estimate the opportunity cost of every choice. Applying opportunity cost concept in my day-to-day life helps me better schedule my study time. For instance, I usually choose to study during weekdays because the opportunity cost of studying on these nights is lower than studying on Friday or Saturday nights, when usually more exciting events are happening. On the other hand, if my alternative on weekend is to stay home and organize my closet and do my laundry, I would choose to study, because to me, the value of studying is more than the value of above...
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...Introduction: Economics has become an increasingly significant part of contemporary life. Regardless of the daily expenditure of our life or the allocation of the social wealth, all this affairs related can be explained by the economics and the functions of economics are playing the essential role. The essay is aimed to define the economics and discuss how we can use economics in our future career or daily life. What is economics Professor Israel Kirzner in The Economic Point of View points out that even among professional economists, there are ‘a series of formulations of the economic point of view that are astounding in their variety’. Many people feel that they are generally familiar with economics. However, if what the economics is asked, people will find that it is difficult to define the subject. After all, economics is more than money. As Mankiw mentioned in his book, economics is a study of mankind in the ordinary business of life, it examines that part of individual and social action which is most closely connected with the attainment and with the use of the material requisites of well-being. More generally, economics is the science which studies human behavior as a relationship between ends and scarce means which have alternative uses, and scarcity refers to the limited nature of society’s resources. That is to say, economists not only study the consumption determination and investment portfolio, but also pay attention to the results that led by the consumption...
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...AIU Abstract This paper’s objective is to discuss the differences between microeconomics and macroeconomics and examples of each. It will discuss a personal microeconomic example with the factors that contributed to the decision. It will also discuss an example of a macroeconomic phenomenon and the results of the decision. Economics for the Global Manager Microeconomics is an analysis of how individuals and firms will make themselves as successful as possible in a world of shortages and the penalty of those individual decisions for markets and the entire economy. It will study how individuals and firms make decisions and how the individual decisions will affect markets (Perloff, 2012). Macroeconomic is an analysis of the performance of the whole economic system. It can forecast the national income by studying the major economic factors that have predictable patterns or trends and the influence they have on one another. The factors used are prices, balance of payment positions, gross national product, and employment / unemployment (Macroeconomics, 2013). The difference between microeconomics and macroeconomics is clear. Microeconomics is the study of the individuals / firms markets. It looks at the allocations of resources and the prices of goods. Macroeconomics is a study of the whole economic system. It looks at gross national product and how it affects unemployment. A microeconomic phenomenon example is taking a looks at a specific company to determine how they...
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...Article(s): “I’m quitting my job. Thanks, Obamacare! & Obamacare may prompt people to work less. Author: Tami Lusby Date: Published 2/25/14 at 10:35 am & Published 2/5/14 at 9:41am II. Summary (30%) This article shows the microeconomics issue to be Obamacare and how it is allowing everyday people reconsider health costs and if the need to continue to work full-time in necessary. Several people are finding the Obamacare is allowing them to work less under Obamacare. This article provided comments from several people how Obamacare has allowed them to retire early due to a heath concern. Or just to leave their current job and acquire Obamacare. As a result of this they are allowed to spend more time with family or pursue entrepreneurship dreams. This article shows that several people were only holding their jobs for the benefit of having health care coverage. III. Microeconomic issue(s) (30%) What is a Microeconomics issue? The Economist's Dictionary of Economics defines Microeconomics as "The study of economics at the level of individual consumers, groups of consumers, or firms... The general concern of microeconomics is the efficient allocation of scarce resources between alternative uses but more specifically it involves the determination of price through the optimizing behavior of economic agents, with consumers maximizing utility and firms maximizing profit." Several questions can arise from this microeconomic issue. Ex: * Since...
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...understanding these concepts aids in the decision-making process. At each stage, new variables are introduced causing the shifts of the supply and demand curves the challenge is to determine the new equilibrium price correctly. This paper will explain what parts of the simulation are categorized as microeconomics and which are macroeconomics and why. In addition, identify a shift of the supply curve, a shift of the demand curve, and what caused the shift. I will also discuss what I have learned about supply, demand, and equilibrium price, and how microeconomics and macroeconomics principles or concepts affect it all. Microeconomic Principles or Concepts The first scenario I categorized as a microeconomic concept is the first challenge to reduce the number of vacancies in GoodLife’s two bedroom, temporary month-to-month lease apartments from 40 percent to less than 15 percent, finding a rental rate that will net maximum revenue. The second scenario I also put in this category involves an increase in in the number of rental units the company handles (from 2,000 to 2,500 units) and the rent increase to cover the additional maintenance required to rent all 2,500 units. My reasoning is microeconomics is the study of individuals’ choices and how their choices are influenced by economic forces (Colander, 2013). Macroeconomic Principles or Concepts Since macroeconomics “is the study of the economy as a whole” (Colander, 2013), the scenarios I chose for the category of macroeconomics were...
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...Microeconomics and the Laws of Supply and Demand Rose Essor DeSouza ECO/365 September 7, 2015 Lori Geddes Microeconomics and the Laws of Supply and Demand The Khan Academy video explained how demand and/or supply changes are affected when factors in the market change, and how these changes affects market equilibrium, which is the state where the supply in the market is equal to the demand in the market, price and equilibrium quantity. Because demand and supply in the market is interdependent and are constantly changing or shifting, they play a critical role in altering market equilibrium price points and quantity available. Demand shifts of more or less of a product results in a shift of both price and quantity. An increase in demand will shift price up and quantity to the right and a decrease in demand will shift price down and quantity to the left on the demand curve. Supply shifts of more or less of a product affects the equilibrium point by shifting the supply curve to the right, indicating that more availability of a product. This results in a lower price and a higher demand for a product. A shift in the supply curve to the left, indicating there is less availability of a product, which results in a higher price and a decrease in demand of a product. Supply and Demand Curves Microeconomics places emphasis on demand and supply in the marketplace, which normally determines the change of levels in price and factors of individual choices while macroeconomics...
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...families alike. Good Life Management is the premier choice for tenants seeking two bedroom apartments and also is the only choice. Often times in the real estate rental industry rental apartments experience a higher degree of vacancy and Good Life is looking to reduce the vacancy rate from 28% to 15%. Lowering the amount of available units was no easy task for Good Life management and likely would not have been achieved with a solid understand of the principles of the micro and macroeconomics and the supply and demand curve. This simulation has taught the importance of economics and how the play an important part of everyday life. Micro and macroeconomics play a key role in the everyday lives of people and corporations. In the simulation in this weeks assignment Atlantis is a prime example of just how often people come into contact with situations with two important factors of economics. The two important factors are supply and demand and they affect everything that we as people do in everyday life. Understanding supply and demands makes consumers, the supplier and us, determine when it is best to buy and best to sell. Understand this principle enables us to make more informed purchasing and selling decisions. There are a number of real world examples of how micro and macroeconomic principles appear in this weeks assignment simulation, but mostly macroeconomics come into play because it is in the perspective of the business franchise, Good Life Management. Supply...
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...Supply and Demand Simulation Supply and demand is an important concept for both macroeconomic and microeconomic. The week two assignment reveals how an apartment company in the city of Atlantis is changed by many different economic points. The microeconomics ideas can be shown as the changes in the supply and demand and even the equilibrium, since the topics are only having affects on the small apartment. The macroeconomic ideas can then put into the category as price elasticity and/or the price ceilings since they have a bigger impact on the overall region beyond the local markets. This simulation had a shift in the supply curve and the demand curve which would cause bigger changes in the economic area. If the demand curve moves at all to the left, it would then show a decrease in demand and then cause less apartments to be rented. The other situation that would occur in this simulation was due to a large want for more property ownership instead of just renting, which then made the management company lower their prices to then be able to compete with the market. The equilibrium price was then lowered because the demand was decreased, while everything else remained the same. If the supply curve is to move to the right it would show more of an increase in the availability of apartments to rent in the area. This situation would happen if the management company were to look into expanding the building to have more apartments for rent. This would work only if there wasn’t any...
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...| Supply and Demand Simulation Nivea E. Martinez Ramirez University of Phoenix ECO/365 Principles of Microeconomics April 1st, 2014 Professor Evaristo Medina-Irizarry The assignment will analyze and summarize the Supply and Demand simulation from the student website. The purpose is to recognize two microeconomic and two macroeconomic principles included in the simulation and to explain why these principles are categorized as macroeconomic or microeconomic. The paper will also identify at least one shift of the supply curve and one shift of the demand curve from the simulation, including an explanation of why these shifts happen. In addition, analyzed for each shift, their impact on the equilibrium price, quantity, and decision making. Subsequently, it will mention different ways in which concepts about supply and demand can be useful in the workplace and in real life-situations. The paper will also discuss ways in which models of microeconomics and macroeconomics benefit in understanding aspects that affect changes in supply and demand on the equilibrium price and quantity. Finally, the paper will include an explanation on how the price elasticity of demand affects the consumer’s purchasing and on the firm’s pricing strategy. Microeconomics models presently in the simulation are: supply and demand. The simulation refers to the supply and demand of rentals apartments in a small city of Atlantis, including the factors. At the same time, it shows the impact...
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...Prnciples of Microeconomics ECO/365 Michelle Kinnison November 11, 2013 What Is Economics Economics is the study of the production and consumption of goods and the transfer of wealth to produce and obtain those goods. In generic terms, economics is the basic fundamentals of how money exchanges make the world go around. Economics explains how people interact within markets to get what they want or accomplish certain goals. There are two main types of economics: microeconomics and macroeconomics. Microeconomics focuses on the actions of individuals and industries, like the dynamics between buyers and sellers, borrowers and lenders. Macroeconomics, on the other hand, takes a much broader view by analyzing the economic activity of an entire country or the international marketplace. In my everyday personal life, economics plays an important role with regards to a financial balance within our household. Everyday purchases such as groceries and gasoline for our vehicles are pretty simple to justify. Obviously when making purchases you want the best value for you money. But in all honesty, I am not the type of person who will drive six miles to the next gas station because I can save eight cents a gallon. When it comes down to it, making the smart purchase is wise, but time is money too. Larger purchases, such as a vehicle, or a home, take a lot more time when considering what and when to buy. Timing is important because of interest rates, and of course income. My wife and I went...
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...it seeks to identify two microeconomic principles and two macroeconomic concepts presented in the simulation with explanations why they are categorized as macro or microeconomic. It also identifies one shift of the supply curve and one shift of the demand curve and the shifts’ cause. Additionally, impact on equilibrium price, decision making, and quantity are analyzed. Different ways are referred in which concepts about supply and demand can be applied in a real life/ workplace situation. Ways are shown in which concepts of micro and macroeconomics assist in understanding factors influencing movements in supply and demand, on the equilibrium price, and quantity. Finally, it explains the way in which price elasticity of demand has an impact on consumer’s purchasing, and on the pricing strategy of the company. Two microeconomic principles from the simulation are demand and supply. “The demand curve is downward sloping, and that quantity demanded increases as the price decreases, as you move down the demand curve” (University of Phoenix, n.d.). In the University of Phoenix simulation (n.d.), Good Life could increase the quantity demanded of its rented apartments only by reducing the rental rate. “The supply curve is upward sloping, and the quantity supplied increases with an increase in price, as you move up the supply curve” (University of Phoenix, n.d.). In the University of Phoenix simulation (n.d.), an increase in rental rate would cause Good Life to lease out more apartments...
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...Chapter 1 answers Rational Interest 1a) According to my self beneficial factor i believe i would like to attend school full time because this would allow me to complete school faster and earn a degree for a high paying job and a life changing career but at the same time when there seems to be some time on my hands i would also decide not to be a full time student. For instance, on the summer i would be able to work, comprehend and experience the factors for working for ones self etc. I say this because it is not a logical idea to always be a full time student and not have any experience of work and at the same time it would be shoddy for me to work full time because i would have not time for school. 1b)I would rather buy a used book because it allows me to save more money for emergencies. Buying a new book would cost me a lot and selling it would not benefit me what so ever because i would have to sell it at a quarter of the price because it has be used. Buying it used and selling it at the same pre-owned amount is the best decision for me to make. Resources 2a)a taxi cab- physical capital 2b)computer software- physical capital 2c)one hour of legal counsel- labour s)a parking lot - physical capital Macro or Micro issue 3a) microeconomic issue 3b)macroeconomic issue 3c)microeconomic issue 3d)microeconomic issue Chapter 2 answers Opportunity cost 4)if i decide to go to florida i will lose $1000 700 for the cost of florida + the 400 made...
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