Eco372 Ten Principles of Economics and Data of Macroeconomics
Autor: georgiapreach • March 30, 2019 • Research Paper • 1,236 Words (5 Pages) • 529 Views
Ten Principles of Economics and Data of Macroeconomics
Trouble Carter
Prof Hank Lewis
ECO/372
It is my duty to put the mind our CEO at ease. The strategic planning committee does need to know and understand the current economic thoughts and processes. The strategic planning committee must be aware of this in order for the company to grow. The committee cannot afford to be in the dark. The CEO is interested in growth. Growth is inevitable when the current economic thoughts and processes are known. Lets start with Economist.
In regards to Economist, they qualify to be scientists by their ability to develop economic models and examinable data. Economist take this data and then test the validity of it. Formulated economic models gives rise to predictions and assumptions. Economist explain inflation in these recent times by the consumer price index. Data is everything to these guys! Through the use of informational data, economists are in a position to explain economic phenomena (Dali, 2011). Economists create and conform detailed hypotheses, tests them using theories and finally come up with plausible solutions and remedies that best address a given economic in the nation. Through the use of informational data, economist are in a perfect position to explain the phenoms of the economy. Economist are scientist in every sense of the word.
Economist can be powerful because they are involved in the policymaker process. Economists outline the actions by the monetary and federal authorities. Because they are involved with the policymaking process, they provide a wider view of the events occurring in the whole world. Economist develop policies and frameworks which best suit the economy. The government leans and depends upon economists. They seek suggestions and solutions to the government body.
We should consider this. One of the primary reasons why studying economics is important is in order to understand resource distribution and allocation and usage. Mainly, resource allocation is indispensable and needed in the respected nation.
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Food, shelter, clothing, accessibility of social amenities, health, use of natural resources are some of the resources available to the society. These resources are public and do not belong to a particular person but rather to the society as a whole. The policies they formulate affect the functions of the market. The policies enforced by the government affects and impacts the different economic players in the economy model. We will explore the circular flow model.
As we indulge the circular flow model, consider to describes the means by which monetary and physical goods and services flow through economic markets along with households and firms in the economy. The circular flow model has another layer to it also. Households not only demand the goods and services but also supply the much-needed labor for production. Observe the following diagram:
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