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Examples Of Microeconomics

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The economic system is done on two levels: microeconomics and macroeconomics. Microeconomics is the study of economics on a small scale, such as the individual behaviour in the economy markets (Davis, 2009). For example, microeconomics study will analyse how individuals respond to the incentives, the expenses of a firm or the household income.
On the other hand, macroeconomics study of economics on a large scale usually the national economy (Investopedia, 2003). It analyse the national goals of the economy, such as maintaining full employment, stabilizing the economy or pursuing the economic growth.
A market, in an economic view refers to which buyers and sellers negotiate the exchange of specific goods. Markets can be distinguished into product …show more content…

The Circular-Flow Model. Digital image. The Circular-Flow Model. N.p., n.d. Web. Retrieved from http://economics.about.com/od/economics-basics/ss/The-Circular-Flow-Model.htm
When the demands of the consumer for the goods/services increases, the market price will increase as consumers will compete to purchase them. This will persuade businesses that seek profit to increase the production of the goods/services. If the supply of these goods /services begins to exceed the demand, the market price falls and the production of these goods/services reduced. This will affect the profits of the manufacturers, but production will still continue even for smaller profits.
Markets function without having any fixed program or plan. Buyers and sellers act based on their personal desires, abilities and incomes. The market works efficiently without intervention which derives from the policy of “leaving things alone” which refers to “laissez-faire”.
There are 5 common economic objectives of the government: full employment, a desirable mix of economic output, high and fairly distributed incomes, price stability and economic growth (Lindeman, …show more content…

It ensures to provide employment for them. The goal of full employment is a low rate of unemployment approximately between 4 to 5 percent.
Desirable mix of output is the goal of achieving the economy’s production possibilities. It refers to utilizing the labor of those who are willing to work to produce as many goods and services as much as

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1. The goals of stability are maintaining stable prices and full employment, and keeping economic growth reasonably smooth and steady. A situation of having a stable source of financial income that allows for the on-going maintenance of one 's standard of living currently and in the near future. The attempt to balance an economic policy so that everyone benefits fairly. Situation in an economy in which the division of resources or goods among the people is considered fair.

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There are two types of Economics:  Macroeconomics  Microeconomics Macroeconomics • It refers to the group in economy, which the decisions deals with the aggregate behavior and such as changes. Macroeconomics examines economy-wide-phenomena like gross domestic product, natural income, and unemployment and price level. Microeconomics

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ECON251: Microeconomics Dr. Audil Rashid Khaki Prepared by: - Sultan Zwayyed - Waleed Alhasan - Ebrahem Alorf - Hussain Alqallaf The Final Project Deliverable The company's changeable inputs are resources or elements of production function whose quantity can be changed or diversified in the short run by the company, while it intends to adjust the quantity of output manufactured. Labor, energy, and materials are the most familiar examples of variable inputs.

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As it can increase the unemployment rate by more people earning money it increases the productivity of goods, grossing the worker’s demand for goods which turns into hiring

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Most churches today don’t still believe that the earth is flat, or that the sun revolves around the earth. Many churches today are more progressive and tolerable to different beliefs. The scientific revolution brought many ideas that would make churches accept the new teachings of scientist and philosophers like Copernicus and Voltaire Copernicus was the first person to believe that the Earth and all other planets revolved around the sun. Before Copernicus's discovery the Scientist and astronomers believe that the sun rotated around earth. Other astronomers didn’t believe in his theory because Copernicus had no way of proving his theory.

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Abuse. Abuse is a shapeshifter. It plays tricks on the victim, mocks them, and makes them feel crazy. It affects the way people look at them, because of the decisions they make from it. In Colleen Hoover’s novel, It Ends With Us, the protagonist Lily Bloom is raised by her abusive father.

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As sellers in this system aim to maximize profit, they will find ways to make production efficient and cost low. And because the buyers are willing to pay for the services and products that they

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Macro-level analyses generally look at the outcomes of interactions like economic and resource transfer over large populations. It is based on, but not limited to, society, nation, civilization, international, and global. Macro-level studies have been more of the dominant approach, and have been practiced ever since Emile Durkheim. Conflict theory has three assumptions: 1. conflict arises from having conflicting interests or competing for the same resources; 2. conflict usually leads to one or more individuals controlling others; 3. making changes in society is good and necessary.

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This is also where price mechanism takes place because any changes in demand and supply, will affect the price, and eventually balancing the demand to be equal to supply. This is the reason why consumers and producers have no control over the price, and in this situation, everyone is considered as price takers. This causes a horizontal line in the demand curve for the firm’s product(s), as can be seen in Figure 1 (b). Figure 1 There are barely any barriers to enter this market, making it easy to enter and exit according to the firm’s capabilities.

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locally produced raw material prices in Japanese markets. Hence, the effect of global change in the US dollar value is noticeable in micro economy of the country. Here it is clear how change in macro economy has connection to micro economy. In short macro and micro economy are so interrelated that sometimes most government have difficulty to formulate a particular economic policy solely relaying one of the two (macro or macro economy) branches of economy.

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Hence, the resulting market failure encourages the government intervention through the price control mechanism although seemingly lead to welfare

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Government Government is a system of social control under which the right to make laws, and the right to enforce them, is given to a particular group in society. Government power can be held by one individual, a few, or a majority. Government come in different forms. The basic law determining the form of government is called the constitution and may be written, as in the United States, or largely unwritten, as in Great Britain.

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