Description
Purpose of Assignment
In Week 1, students are introduced to the ten fundamental principles on which the study of economics is based. Throughout this course, the students will use these ten principles to better develop their understanding of economics and how society manages its scarce resources. Students will see how markets work using supply and demand for a good to determine both the quantity produced and the price at which the good sells. The concepts of equilibrium and elasticity are used to explain the sensitivity of quantity supplied and quantity demanded to changes in economic variables. Students will see how government policies impact prices and quantities in markets.
Assignment Steps
Resources: Principles of Microeconomics, Ch. 1, 2, 3, 4, and 6.
Prepare an 875-word research paper as part of a marketing research committee for your organization about current microeconomic thought and theory.
Identify the fundamental lessons the Ten Principles of Economics teaches regarding:
- How people make decisions
- How people interact
- How the economy works as a whole
Explain the following to help the committee members understand how markets work:
- How society manages its scarce resources and benefits from economic interdependence.
- Why the demand curve slopes downward and the supply curve slopes upward.
- Where the point of equilibrium is and what does it determine?
- The impact of price controls, taxes, and elasticity on changes in supply, demand and equilibrium prices.
Format consistent with APA guidelines.
Explanation & Answer
Attached.
Running head: TEN PRINCIPLES OF ECONOMICS
Ten Principles of Economics
Name
Institution
Date
1
TEN PRINCIPLES OF ECONOMICS
2
Economics is defined as the study of the scarcity of the resources as well as how different
people make use of the available resources. It is also defined as the study of decision making.
Economics helps in understanding historical trends, making the future predictions as well as how
to interpret the current headlines. In general, people need certain things in their life and they tend
to change their behavior so as to get what they need. For example, a family does the management
of its function the same way economists see the society. The primary aim of the family
undertaking this is to ensure that each member of the family is satisfied even though each one
cannot have all that he/she needs.
How people make decision
Economics is generally guided by ten primary principles which help in better
understanding concerning how people make decisions. In getting to know the decision-making
process which is followed by different people, the first four principles of economics are applied
to summarize the whole process. The trade-offs which are faced by different people is a good
evidence in the day to day actions such as how people utilize their free time. Mostly, the tradeoffs are identified by the magnitude of t...
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