Econ Exam

First Exam Study Guide Michael Campbell What is the study of economics? Societies physical exertion of scare resources * Some argue resources actu altogethery arent all that scare Difference between Macro- and Micro- economics Macroeconomics Functioning of the economy as a whole Microeconomics Individual decision making units What are the economic institutions? Everyone intricate in the economy * Consumers * Producers * Manufacturers * Wholesalers * Retailers What is economic tools/reasoning? Making assumptions about gay nature and decision making * economical reasoning aspects are intuitive * scotch behaviors are modeled What are the economic aspects of outsourcing? * Outsourcing is when companies contract out whatever of their jobs to other firms * Example: Walmart hires local janitorial firms to clean their stores at night Economic view on outsourcing: As long as outsourced jobs roost in the US, one Ameri arseholes job becomes another(prenominal)s. But when a job is outsourced job is offshored than our employment goes overcome one. Circular rise diagram * This diagram answers what people do with their incomes This is a very simplistic diagram.

In the outer circle, we have factors of end product (land, labor, capitol, and entrepreneurial ability) flowing from households to championship firms. The firms transform these factors into goods and services which than flow to the households. In the inner circle is composed of money. Households receive earnings and salaries, rent, interest and profits from business firms. This money is spent on good and services so it is sent back to business firms in the form of consumer expenditure. This diagram excludes imports, exports, and the government sector. Says Law Supply creates its own demand * In the course of production of goods and services, large income is paid to the factors of production so that all goods and services can be produced. * Demonstrated in... If you want to get a safe essay, order it on our website: Orderessay

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