Unit-1 Q1. Define micro and macro economics‚ Distinguish between them‚ and explain the scope‚ importance and its limitations Ans. modern economy analysis has been divided into two major branches that is micro and macro economics. Micro economics means the economics system which deals individual economics unit on the other hand macro economics means the economics unit which deals aggregate as a whole that is national income‚ general employment‚ and total out –put‚ general price level etc. These two
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What does it mean to begin to think like an economic naturalist? Begin to thinks like an economic naturalist is start using a systematic way of examining the world by examining sunk cost. Now that you are becoming an economic naturalist from this point on‚‚ discuss the key variables economists use to view their world and tell what each one represents? The key variables economists use to view their world is: Scarcity witch necessitates that choices must be made. Making choices implies the existence
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|Definition of ’Positive Economics’ | |The study of economics based on objective analysis. Most economists today focus on positive economic analysis‚ which uses what is and what has been occurring in | |an economy as the basis for any statements about the future. Positive economics stands in contrast to normative economics‚ which uses value judgments. | |Investopedia
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In economics‚ there are two main theories: Keynesian economics and Classical economics. Each approach to economics has a different take on monetary policy‚ consumer behavior‚ and last but not least‚ government spending. Let us first look into classical economics. The basis of the Classical Theory of Economics is self-regulation. Supporters believe that the economy is able to maintain its-self and is always capable of achieving the natural level of real GDP. While circumstances do occasionally arise
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ECONOMIC GROWTH AND ECONOMIC DEVELOPMENT In contemporary times‚ certain economic registers are used frequently. Arguably two of these most used terms in economics‚ ‘economic growth’ and ‘economic development’ are terms that just about everyone is at least remotely familiar with‚ even if they have not studied economics at all. Sometimes it seems everyone knows what economic growth and economic development is. Politicians use these terms all the time‚ and so do teachers‚ managers and even preachers
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Guilt By Association The first fallacy is an example of Guilt by Association (no Latin name). Guilt by Association is when a stereotype is used as evidence to support an argument. The character who committed this fallacy in Twelve Angry Men was the Stockbroker. The Stockbroker said‚ “He is from a slum. Slums are breeding grounds for criminals.” The Stockbroker committed a fallacy when he brought up the fact that the accused man is from the slums because his argument was that this would give him
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The second half of chapter six delves into more fallacies that can hinder rational‚ logical thought and the open process of argumentation. This lesson helped me to understand the difference between the red herring and the straw man fallacy. I was able to understand how to recognize an ad hominem. As I read the text‚ it became apparent to me that I often fall victim to both the ad populum and the appeal to pity. The fallacy I found most interesting in this lesson was equivocation. In the last lesson
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Economics Chapter One: Ten Principles of Economics Scarcity – the limited nature of society’s resources Economics – the study of how society manages its scarce resources Principle #1: People Face Tradeoffs Making decisions requires trading off one goal against another A dollar/unit of time spent on one thing is one less dollar/unit of time less spent on another Common trade offs include: “butter for guns”‚ a clean environment or a high level of income & Efficiency – the property of society
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Construction Economics: Government Economic Policy A policy refers to any rule or principle used in guiding decision making and achieving rational results. The intended goals to be achieved by a policy widely vary with the organization and the context to which it was made. Policies are basically made to prevent negative effects noticed in an organization or promote positive benefits. Government economic policy refers to the actions that a government takes to influence its economy. The economic policy
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Base Rate Fallacy Base rate fallacy is when probabilistic inference is made based only on data relating specifically to the situation but ignores additional background or general data relating to the instance of the situation that sometimes leads to wrong conclusions. Base rate fallacy is a “paradigmatic Bayesian inference problem” (Bar-Hillel‚ 1979). If we consider a situation where a hit and run occurred at night in a city where there are 2 cab companies and a cab was suspected to have been involved
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