Microeconomic Theory
Running head: Module 1 Homework
Module 1 Homework
Michael J Feller
Allied American University
Author Note This paper was prepared for ECN 150: Introduction to Microeconomics, Module 1 Homework taught by Dr. Dani Babb.
PART I
Directions: Please draft a three page long document in APA format in which you address the questions below. You must cite at least three scholarly sources within the context of your work and cite your references according to APA style. Please utilize LIRN to help you get started with your search. You may visit the Academic Resource Center for a guide on how to utilize LIRN successfully.
1. Describe and identify microeconomic theory and contrast it to macroeconomic theory.
2. List and explain the four principles of individual decision-making. In your explanation identify elements that go into the decision making process.
3. Provide an example of a decision in which you faced trade-offs, considered opportunity costs and evaluated the options by comparing the marginal benefits and the marginal costs associated with that decision.
4. List the incentives which drew you to that decision or the incentives that could have led you to make a different choice.
Microeconomics is the study of the law of supply and demand at the consumer level. This is the decision by individual households on allocation of limited resources. Macroeconomic decisions are focused on the country and governmental decisions. Macroeconomics is the study of the economy as a whole. While microeconomics deals with households and the consumer level, macroeconomics deals with complete industries. Microeconomics deals with the lower level of the economy. Microeconomic decisions are motivated by cost and benefits. A families financial decisions are based on microeconomics. When one asks “Should I make this purchase?” This is based on that person’s financial status. Macroeconomics is the larger picture considering how all of
Module 1 Homework
Michael J Feller
Allied American University
Author Note This paper was prepared for ECN 150: Introduction to Microeconomics, Module 1 Homework taught by Dr. Dani Babb.
PART I
Directions: Please draft a three page long document in APA format in which you address the questions below. You must cite at least three scholarly sources within the context of your work and cite your references according to APA style. Please utilize LIRN to help you get started with your search. You may visit the Academic Resource Center for a guide on how to utilize LIRN successfully.
1. Describe and identify microeconomic theory and contrast it to macroeconomic theory.
2. List and explain the four principles of individual decision-making. In your explanation identify elements that go into the decision making process.
3. Provide an example of a decision in which you faced trade-offs, considered opportunity costs and evaluated the options by comparing the marginal benefits and the marginal costs associated with that decision.
4. List the incentives which drew you to that decision or the incentives that could have led you to make a different choice.
Microeconomics is the study of the law of supply and demand at the consumer level. This is the decision by individual households on allocation of limited resources. Macroeconomic decisions are focused on the country and governmental decisions. Macroeconomics is the study of the economy as a whole. While microeconomics deals with households and the consumer level, macroeconomics deals with complete industries. Microeconomics deals with the lower level of the economy. Microeconomic decisions are motivated by cost and benefits. A families financial decisions are based on microeconomics. When one asks “Should I make this purchase?” This is based on that person’s financial status. Macroeconomics is the larger picture considering how all of
References: Principles of Microeconomics (6th Edition) N. Gregory Mankiw (2011) Chapter 1 and Chapter 2 Module 1 notes and slides