Microeconomics :: Papers

Micro frugals This paper will attempt to examine microeconomic structures in carnal knowledge to technological advances. The impact of increasingly available applied science is a theatre economic force. Prior to 1975, for example, see a first run photo at home was technically possible but economically infeasible. hardly the wealthy chose to view moves at home. videocassette recorders became available in 1976, with a normal price tag of $2000.00 Even at such a high school price, that invention slashed the price of home viewing. Today a VCR can be purchased for $200.00, a fraction of its initial cost. Videos can be rented for approximately a dollar or purchased for around $20.00. Home viewing has become common in a few short years, where erstwhile it had been available only to the very rich. In what other ways has technology changed the way of life and can microeconomic mechanisms accurately predict future day economic outcomes? What is Economics? The simple answer to the qu estion, What is the thrift? is to state that the economy is the means by which resources are allocated. A more accurate characterisation of economic process is to view it as a machine that produces lead distinctly different results First, the economy determines what goods and service will be produced and in what quantities. Secondly, it indicates how various goods and services will be produced. Thirdly, it resolves the question of distribution. Markets for goods and services, and markets for production of those goods and services -- command mechanisms --directly correlate with the choices made by households, firms and governments. The US economy relies chiefly on markets but to a degree on command mechanisms. The US economy is an open economy and has become highly integrated with the worldwide economy. This is a fairly recent information, with foreign investment into US task outstripping US investments in foreign enterprises shifting the balance in the mid-1980s. Economists study these financial movements in order to determine the underlying principles driving the economy. This come along utilizes the analogous rigor and objectivity of immanent scientists. Economic science, like natural science, is an attempt to discover a body of laws. All sciences use the same criteria in the investigative process careful and systematic observation and measurement, and the development of a body of theory to direct and interpret observations. That theory is a general rule or principle that allows economists to understand and predict the economic choices that people make.