Ten Principles of Economics and the Data of Macroeconomics, writing homework help

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Economics

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Purpose of Assignment

The purpose of this is assignment is for students to review the basic principles of economics and the concepts of the circular flow model, showing the connectivity of society's economic players and the flow of goods and money within an economy. Students will learn how society allocates its scarce resources and how economists are both scientists and policymakers. Students will define GDP and CPI and how they are calculated.

Assignment Steps

Resources: National Bureau of Economic Research; Principles of Macroeconomics: Ch. 1, 2, 3, 4, 5, 6, and 7

Scenario: Your organization's CEO is concerned that members of the strategic planning committee are not familiar with current economic thought and principles. The CEO has assigned you the task of developing a report to introduce some of these thoughts and principles.

Develop a 1,050-word report to the members of the strategic planning committee explaining the following information:

  • How economists are both scientists and policymakers and what principles society uses to allocate its scarce resources.
  • Using the circular flow model, explain the flow of money and goods in an economy.
  • How the economy coordinates society's independent economic actors.
  • A country's gross domestic product (GDP) and how it is defined and calculated.
  • How the consumer price index (CPI) is constructed and why it is an imperfect measurement of the cost of living.

Format the assignment consistent with APA guidelines.

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Explanation & Answer

Hi, I have completed the report find it in the attached file below

Ten Principles of Economics and Data of Macroeconomics
Student’s name:
ECO 372
Instructor’s name:
Date of submission:

To:

STRATEGIC PLANNING COMMITTEE

From:
Subject: PRINCIPLES OF ECONOMICS AND THOUGHTS
Date:
cc: CEO
Economics is an important aspect in our daily lives. The organization CEO has
discovered that the members of the strategic planning team are not familiarized with current
economic concepts and principles. I am writing this report to inform the committee members on
the principles and ideas of economics. The report presents information on principles of
economics applied in distributing scarce resources within a community, ways in which an
economist is both a scientist and policymaker. Further gives a description of the concept of
circular flow model, the idea of Gross Domestic Product (GDP) and lastly Consumer Price Index
(CPI) and its applications.
Economists are scientists since they come up with models and hypothesis tested using
data. The predictions made from the models are at times inaccurate. The data assist economists
determine what people within a society do. An economist as a scientist tests economic
assumptions and theories scientifically using other theories and data. Additionally, economists
analyze past data and work on it, scientists utilize previous information. From this information
and analysis economists become policy makers; they determine how the economy should work
for instance change in taxes from data collected on the effects it would cause. Economists assist
determine policies that will improve the country’s economy. Economists identify losers and

winners in public policy changes such as private markets and minimum wages. Economists
determine what tax rates and other economic factors appropriate for the benefit of the country,
Economic is the study of how a society allocates its resources to result in desired output
and meet unlimited demands. The society assisted with economic institutions such as private
markets employs certain principles to allocate scarce economic resources. Markets use the
pricing system whereas the command systems use political choice to distribute the resources.
The society uses the first four principles of economics to distribute scarce resources; the first is
trade-off entails sacrificing something the society really desires. To make the decision one has to
tradeoff individual targets against societal targets. The society applies the second principle
whereby to make decisions a person should compare the costs and benefits of available options,
opportunity cost. When the resources are limited the economist has to make a choice sacrificing
another opportunity to get one within available resources. The third principle applied is that
rational people make decisions basing on marginal costs and benefits to achieve their objectives.
Lastly, individuals respond to incentives, anything that brings benefit could be either negative or
positive. (Munkiw, 2015)
A circular flow model is a diagram used to determine the movement of goods and money
within an economy. The economy functions in many aspects interr...


Anonymous
I was struggling with this subject, and this helped me a ton!

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