Macro Micro Economics - 2304 Words

â€Å"Economics has never been a science - and it is even less now than a few years ago.†Ã¢â‚¬ ¦Paul Samuelson INTRODUCTION Economics is the social science that analyzes the production, distribution, and consumption of goods and services. A focus of the subject is how economic agents behave or interact and how economies work. A given economy is the result of a process that involves its technological evolution, history and social organization, as well as its geography, natural resource endowment, and ecology, as main factors. These factors give context, content, and set the conditions and parameters in which an economy functions. The world economic events and how they affect the domestic economy .The economic activity, and of the interactions†¦show more content†¦These need not to be always correct. Also known by â€Å"FALLACIES OF ECONOMICS†, are mainly as follows: The post hoc fallacy: This is explained as ‘X event follows Y event and hence is the result of Y’ which might not be true. Failure to hold other things constant: When we study any economic relation between two factors, we keep other factors constant to come to any conclusion. But in reality other factors are also dynamic so relation observed is not accurate. Eg: Kennedy-Johnson tax cuts of 1964 in US, which lowered tax rates sharply and were followed by an increase in government revenues in 1965. The fallacy is that it overlooks the fact that the economy grew from 1964-1965, because people’s income increased and hence the revenues. The fallacy of composition: This occurs when there is a result true for a small sample space and we integrate the same result for population under consideration. Eg: Increasing saving is obviously good for an individual, since it provides for retirement but if everyone saves more, it may cause a recession by reducing consumer demand ECONOMIC SYSTEMS 1. Centrally Planned Economy A centrally planned economy is the contrast of the market economy. All decisions are made by the public sector (government). There is very little insight into what the individual wants. Centrally planned governments would allocate resources as they see fit. This economic system is designed to promoteShow MoreRelatedMicro Macro Economics1841 Words   |  8 Pagesin International Business Professor Asefaw Indrias June 21, 2015 The macro environment in the Communist country of China is represented by a socialist system with Capitalistic characteristics unique to China. Despite having many similarities to an authentic Capitalistic system, China is placated upon a macro environment wherein the Communist party and its policies deeply impact all aspects of the economy and economic development. Different industries are present within the country includingRead MoreExamples of Macro and Micro Economics840 Words   |  4 Pages?Economics is a social science that mainly focuses on different fields of knowledge dealing with the proper distribution, allotment, production and consumption of resources. Economics has been divided into two significant branches; one of it being the microeconomics and the other one being the macroeconomics. Microeconomics can be easily understood through the term micro itself which means small, microeconomics focuses on small level that is to say it includes areas of individual decision makingRead MoreDifference Between Micro And Macro Economics895 Words   |  4 Pages1. What is the difference between micro and macro economics? Give an example of a microeconomic phenomenon and an example of a macroeconomic one. If you look at the definition of the word micro, some words that come to mind are small and extremely tiny. Therefore, we can look at microeconomics as dealing with small quantities of the whole or specifics. At this end, microeconomics deals with things at an individual level and studies issues such as consumer behavior, individual labor market and supplyRead MoreMacro and Micro Economic Factors that Influence Plant Activity1309 Words   |  6 PagesThis paper will first discuss factors that describe and analyze the macro- and micro-economic factors that could directly or indirectly influence plant operations here at ABC Complete Kitchens. Next, it will explain legal considerations that our organization must be prepared for, which are also relative to obtaining credit, having reliable market conditions, and avoiding product liability Capital Investment One of the most important concerns to our organization is capital investment. By investingRead MoreThe Economic Inequality Of Hispanic Immigrant And The United States By Using Micro / Macro Level Lenses1049 Words   |  5 PagesHDFS 895 Families in Poverty Hyunjin Choi (Hailey) A45547219 Analyzing Economic Inequality in Hispanic Immigrant Population in the United States by Using Micro/Macro-Level Lenses According to the 2012 American Community Survey (ACS), the U.S. immigrant population stood at approximately 40.8 million, or 13 percent of the total U.S. population of 313.9 million (Nwosu, C., Batalova, J., Auclair, G., 2014). Along with its large number, immigration has had a very significant impact on the U.S societyRead MoreMicro Marketing And Macro Marketing1510 Words   |  7 PagesMicro-Marketing and Macro-marketing have to completely different meanings. According Basic Marketing the 9th edition by William D. Perrault, Joseph Cannon, and Jerome McCarthy define micro-marketing concerns the marketing activities of an individual firm, whereas macro-marketing deals with how the whole marketing system works (Perrault, Cannon, McCarthy 2014, p 526). I will be discussing organizational domestic and international, micro and macro marketing impacts on business and society, and identifyingRead MorePart 1 Introduction to Macro Micro frameworks: The Business firm consist of a set of internal800 Words   |  4 PagesPart 1 Introduction to Macro Micro frameworks: The Business firm consist of a set of internal factors and is confronted with a set of external factors (i.e., Environment). This is the relation between a firm and its environment. Business environment (external factors) is classified as (1) Micro Environment (2) Macro Environment Micro Environment: The micro environment consists of the factor of the firm’s immediate environment, i.e. a) Suppliers b) MarketingRead MoreDurkheim Is Dead! Macro vs. Micro Beliefs Essay766 Words   |  4 Pages I have grouped the sociologists in Durkheim is Dead into three groups: macro to micro, micro and macro, and micro to macro. I did not place any one of the individuals into just the macro or just the micro categories. Each one fell into a group that I considered to be in-between. In the macro to micro category, each sociological theory concentrated on one major problem of society and then went on to explain what would have to be done within individuals in order to achieve social progressRead MorePolitical Risk948 Words   |  4 Pagesinvestment. Broadly, political risk refers to the complications businesses and governments may face as a result of what are commonly referred to as political decisions—or â€Å"any political change that alters the expected outcome and value of a given economic action by changing the probability of achieving business objectives.†.[1] Political risk faced by firms can be defined as â€Å"the risk of a strategic, financial, or personnel loss for a firm because of such nonmarket factors as macroeconomic and socialRead MoreMacro and Micro Environment656 Words   |  3 PagesThere are two kinds of external marketing environments; micro and macro. These environments’ factors are beyond the control of marketers but they still influence the decisions made when creating a strategic marketing strategy. micro and macro environments Micro Environment Factors The suppliers: Suppliers can control the success of the business when they hold the power. The supplier holds the power when they are the only or the largest supplier of their goods; the buyer is not vital to the