Survey
* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
Economics Unit One Chapter One: Part Two Graphs and What They Tell Us • Charts and tables show data in rows and columns – They can reveal patterns by showing numbers in relation to other numbers • Graphs use two set of variables – One along the horizontal axis – One along the vertical axis Graphs and What They Tell Us • Line Graphs: – Plot at least two sets of data • One on the horizontal axis (x-axis) • One on the vertical axis (y-axis) – The actual line on the graph is called the curve Line Graph Graphs and What They Tell Us • Bar graphs compare relative values of things – The varying heights of each bar show the proportionate quantity or value of a given product/ item compared to other similar products/ items Bar Graph/Chart Graphs and What They Tell Us • Pie Charts show how parts make the whole – This is a good way to compare percentages Pie Graph/Chart Graphs and Economic Models • Economic models are basically graphs which are simplified representations of economic forces. – Expressed in : words; graphs; or equations • A production possibilities curve is one type of economic model, and one of the most useful and most common. PPC • A PPC charts the maximum amount of goods or services that can be produced from limited resources • PPC’s run between extremes of producing only one item or the other – The typical model distinguishes between “Guns and Butter” – or military and consumer goods • PPC’s show the trade-off between items – More of one means less of another PPC • Concepts revealed by a PPC: – Efficiency: producing the maximum amount of goods and services • These are points on the curve – Underutilization: producing fewer goods and services than possible • These are points on inside the curve – You cannot work above the curve, it is impossible. • If you are working above the curve, then the curve has moved due to an increase in the ability to produce PPC Example Micro v Macro • Economics is the study of how individuals and societies satisfy their unlimited wants with limited resources – However, there are two specific types of economics, and it is important to understand the distinctions between the two. Micro v Macro • Microeconomics – studies the individual players (or aspects) in an economy • Includes players: individuals, families, businesses, etc • Includes aspects: prices, costs, profits, competition, as well as consumer and producer behavior • Macroeconomics – studies the behavior of the economy as a whole • Looks at a combination of all individual units • Includes: inflation, unemployment, aggregate demand, aggregate supply • Also includes: monetary system, business cycle, tax policies, international trade, etc. Positive v. Normative • There are not only the previous was of studying economics, but these as well • Positive Economics: - it is what it is – Describes and explains economics as it is • Uses verifiable facts • Does not make judgments • Normative Economics: - this is what it could be – Studies what economic behavior should be • Makes value judgments to recommend future actions