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Purely from economics Kindly tell me what factors should be discusses/highlighted when...

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studentdivers... | Student | Honors

Posted January 10, 2011 at 12:58 PM via web

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Purely from economics

Kindly tell me what factors should be discusses/highlighted when answering a question in Economics like inflation, unemployment

Below is the list of topics. kindly tell me the factors I should highlight when answering a question related particular topic(s)

1.  What is Economics?

2.  The Economic Problem

3.  Demand and Supply

4.  Elasticity

5.  Efficiency and Equity

6.  Govts. Actions in Markets

8.  Utility and Demand

9.   Possibilities Output and Choices

10. Organizing Production

11. Output and Costs

12. Perfect Competition

13. Monopoly

14. Monopolistic Competition

Externalities

17. Public Goods for Resources

21. Measuring GDP and Economic Growth

24. Finance Savings and Investments

25. Money The Price Level and Inflation

26. Exchange Rates and Balance of Payments

27. Aggregate Supply and Demand

29. U.S. Unemployment, Inflation and Business Cycle

30. Fiscal Policy

31. Monetary Policy

 

Please if it will be good for me if answer is as detailed as possible. Many thanks in advance and cheers

1 Answer | Add Yours

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dbello | High School Teacher | (Level 1) Educator

Posted January 11, 2011 at 12:24 PM (Answer #1)

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The best way to interpret these topics is to give an application. Your list is long therefore I've chosen a few due to enotes length requirements. You might want to split up your list of topics into additional questions.

Economics- the study of scarcity and choice. Application: you have $100.00 to spend but your choices add up to $200.00- instead of going home empty handed you could get something for your $100.00 by purchasing items you needed or wanted the most. Limited resources satisfying our unlimited wants.

Elasticity- is the change in the supply or demand for a product following a price change. Application: Demand- if a drop in price causes an increase in product demand it is 'elastic' if the drop has little effect the product is 'inelastic' Supply- as the price goes up on a product manufactures are willing to produce more of the product for sale.

Perfect Competition- for this market structure to exist there must be many buyers and sellers neither of which can be large enough to affect the price. Application: The production of eggs- there is very little an egg producer can do to differentiate his eggs from other eggs. Most consumers just check whether or not the eggs are broken before they buy them, thats all. Egg producers are 'price takers' (they have to take what they can get)

Monopolistic Competition- or imperfect competition- this structure holds that producers of similar products make them appear different.  Application: Generic aspirin has the same exact chemical compound as 'Bayer' aspirin, however because of the 'reputation' 'Bayer' aspirin has gained through such venues as advertising there are consumers would believe that 'Bayer' is better although the products are almost identical. This application allows suppliers to have significant control over their prices, unlike the egg market.

Hope these applications are helpful.

 

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