The scientific method is a process which is used to study an economic phenomena,provide explanation for the economic phenomena, provide hypothesis for it,and analyse the economic phenomena.To explain economic issues,economists develop hypothesis, collect data and analyse them and then formulate theories based on them.For example to study increasing inflation in a country ,economists may develop a hypothesis of increasing inflation by collecting data from other countries and analyse the data and then make theories based on it. Economists develop their theories based on real world activities.However economists do not have laboratory controls.Without laboratory experiments, economists look to history and analyse the historical events which is another scientific method.
While no economy is purely capitalistic or socialistic , the main differences between the two types of economies are , in a capitalistic economy the means of production are not owned by public but are owned privately while in a socialist economy the means of production are owned by the state.Capitalism gives encouragement to innovation. It gives importance to individual goals. Socialism focusses on equality of society and lays stress on fairness in the society.
In a market economy there is little government intervention and laws of demand and supply control production of goods . However the government has many roles to play in a market economy. The governments main role is to provide for defense , national security etc which will not be provided by private sector.The government also tries to maintain economic stability and growth in the economy.The government promotes competition in the market and provides public goods and services.The government makes stable rules for the economy and makes adjustment for market results which are not desired.
What is the Scientific method of Macroeconomics? While no economy is purely Capitalistic or Socialistic, explain...
What accounted for the rise of the market economy in the nineteenth century? What role did the government play in its ascent?
1. What are the three primary measures used in macroeconomics to assess the of an economy? Briefly explain each measure. (5 points)
The basic difference between macroeconomics and microeconomics is: a. microeconomics concentrates on individual markets while macroeconomics focuses primarily on international trade b. microeconomics concentrates on the behaviour of individual consumers while macroeconomics focuses on the behaviour of firms. c. microeconomics concentrates on the behaviour of individual consumers and firms while macroeconomics focuses on the performance of the entire economy. d. microeconomics explores the causes of inflation while macroeconomics focuses on the causes of unemployment. 5. Scarcity implies that: a consumers...
1. Name and explain the two schools of thought in macroeconomics. 2. Why is specialization and the division of labor important to economic growth? 3. How do you define " per capita growth"? 4. Discuss two sources of economic growth. 5. What role does comparative advantage play in international trade? 6. Name three sources of U.S. comparative advantage. 7. What effect does currency depreciation/appreciation have on that country's exports?
answer these short essay questions. Macroeconomics 1. Name and explain the two schools of thought in macroeconomics. 2. Define structural stagnation. How does it differ from a business cycle? 3. Why is specialization and the division of labor important to economic growth? 4. How do you define " per capital growth"? 5. What are the two growth models? Name the key element that each model is based on. 6. Discuss two sources of economic growth. 7. What role does comparative...
A. Answer four questions: 1. What is the difference between microeconomics and macroeconomics? What are the three focus of microeconomics and why? 2. What does a production possibilities frontier (Curve) illustrate? Discuss and show graphically. 3. The market system and command system differ in two important ways. Compare and contrast all economic systems with examples. 4. Explain Circular flow diagram in an open economy. Show graphically.
Macroeconomics Schools of Thought In Class Assignment 1. Assume the economy is currently in long and short run equilibrium. a. Suppose that the government in this economy goes to war. Holding everything else constant, what do you predict will happen to real GDP and the aggregate price level in the short run? What type of gap is created? Use the AS/AD model to illustrate. a. According to a Classical economist, how can the economy move back to its potential? Explain...
MP Macroeconomics (ECO-201-20105) rses 19WNCMP ECO-201-20105 / Week 1 Week 1 Quiz This type of economy in indicative by the way the government decides what goods and services will be produced and what prices be charged for them. Economic effort is devoted to goals passed down from a ruler or ruling class. will Select one: O a. Traditional economy O b. Command economy C. Market economy d. Private economy O Next page 1 Problem Set Jump to... Law of Demand...
This is a macroeconomics problem. Thanks! 17. Consider a competitive economy in which factor prices adjust to keep the factors of production fully employed. In addition, the interest rate adjusts to keep the supply and demand for goods and services in equilibrium. The economy can be described by the following set of equations: Y=C+I+G C=C(Y-T) I-I(r) Suggest at least two policies that a government could use to increase the equilibrium quantity of investment in the economy and carefully explain how...
A basic difference between a mixed economy and a command economy is that: (a) government owns all economic resources (b) wages paid to labor are higher in a command economy (c) free markets are never permitted in a command e (d) government planners play a much larger role in deciding what in a command economy goods will be produced in a command economy