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1. Reffering to the picture below, understanding economics, explain how a microeconomic system works by describing the inter-relationships of the variables indicated in the said model or diagram

1. Reffering to the picture below, understanding economics, explain how a microeconomic system works by describing the inter-relationships of the variables indicated in the said model or diagram

Economics Today and Tomorrow, Student Edition
Economics Today and Tomorrow, Student Edition
1st Edition
ISBN:9780078747663
Author:McGraw-Hill
Publisher:McGraw-Hill
Chapter20: The Global Economy
Section: Chapter Questions
Problem 5AA
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1. Reffering to the picture below, understanding economics, explain how a microeconomic system works by describing the inter-relationships of the variables indicated in the said model or diagram

2. In relation to the diagram, which is the microeconomic system identify atleast 3 principles of economics that are applicable in the said system. 

The Microeconomic System FISCAL POLICY - MONETARY POLICY TRADE POLICY WELFARE EFFICIENCY RESOURCE MARKET PRODUCT MARKET EFFECTIVITY SUPPLY HOUSEHOLD DEMAND INDIFFERENCE CURVE RESOURCES COMMODITIES UTILITY APPROACH SUPPLY FIRM INDUSTRY ANALYSIS MARKET STRUCTURE
Transcribed Image Text:The Microeconomic System FISCAL POLICY - MONETARY POLICY TRADE POLICY WELFARE EFFICIENCY RESOURCE MARKET PRODUCT MARKET EFFECTIVITY SUPPLY HOUSEHOLD DEMAND INDIFFERENCE CURVE RESOURCES COMMODITIES UTILITY APPROACH SUPPLY FIRM INDUSTRY ANALYSIS MARKET STRUCTURE
Ten Principles of Economics How People Make Decisions 1: People Face Trade-offs 2: The Cost of Something Is What You Give Up to Get It 3: Rational People Think at the Margin 4: People Respond to Incentives How People Interact 5: Trade Can Make Everyone Better Off 6: Markets Are Usually a Good Way to Organize Economic Activity 7: Governments Can Sometimes Improve Market Outcomes How the Economy as a Whole Works 8: A Country's Standard of Living Depends on Its Ability to Produce Goods and Services 9: Prices Rise When the Government Prints Too Much Money 10: Society Faces a Short-Run Trade-off between Inflation and Unemployment
Transcribed Image Text:Ten Principles of Economics How People Make Decisions 1: People Face Trade-offs 2: The Cost of Something Is What You Give Up to Get It 3: Rational People Think at the Margin 4: People Respond to Incentives How People Interact 5: Trade Can Make Everyone Better Off 6: Markets Are Usually a Good Way to Organize Economic Activity 7: Governments Can Sometimes Improve Market Outcomes How the Economy as a Whole Works 8: A Country's Standard of Living Depends on Its Ability to Produce Goods and Services 9: Prices Rise When the Government Prints Too Much Money 10: Society Faces a Short-Run Trade-off between Inflation and Unemployment
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If college-age athletes drop out of college to play professional sports, principle # is the underlying cause. Principle #1: People (Including Individuals and Society As a Whole) Face Tradeoffs Principle #2: The Cost of Something is What You Give Up to Get It Principle #3: Rational People Think at the Margin Principle #4: People Respond to Incentives Principle #5: Trade Can Make Everyone Better Off Principle #6: Markets Are Usually A Good Way to Organize Economic Activity Principle #7: Governments Can Sometimes Improve Market Outcomes Principle #8: A country's standard of living depends on its ability to produce goods and services. Principle #9: Prices rise when the government prints too much money. O Principle #10: Society faces a short-run tradeoff between inflation and unemployment.
Transcribed Image Text:If college-age athletes drop out of college to play professional sports, principle # is the underlying cause. Principle #1: People (Including Individuals and Society As a Whole) Face Tradeoffs Principle #2: The Cost of Something is What You Give Up to Get It Principle #3: Rational People Think at the Margin Principle #4: People Respond to Incentives Principle #5: Trade Can Make Everyone Better Off Principle #6: Markets Are Usually A Good Way to Organize Economic Activity Principle #7: Governments Can Sometimes Improve Market Outcomes Principle #8: A country's standard of living depends on its ability to produce goods and services. Principle #9: Prices rise when the government prints too much money. O Principle #10: Society faces a short-run tradeoff between inflation and unemployment.
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