make the world easier to understand. • The art in scientific thinking is deciding which assumptions to make. • Economists use different assumptions to answer different questions.
order to improve our understanding of the world. • Two of the most basic economic models are: • The Circular Flow Diagram • The Production Possibilities Frontier
MARKETS Revenue FOR Spending GOODS AND SERVICES •Firms sell Goods and Goods •Households buy services and services sold bought
FIRMS HOUSEHOLDS •Produce and sell •Buy and consume goods and services goods and services •Hire and use factors •Own and sell factors of production of production
Factors of MARKETS Labor, land,
production FOR and capital FACTORS OF PRODUCTION Wages, rent, •Households sell Income and profit •Firms buy = Flow of inputs and outputs = Flow of dollars
of the economy. • How households and firms make decisions and how they interact in specific markets • Macroeconomics looks at the economy as a whole. • Economy-wide phenomena, including inflation, unemployment, and economic growth
to describe the world as it is. • Called descriptive analysis • Normative statements are statements about how the world should be. • Called prescriptive analysis
economic data and make economic policy include: • Economic Planning Unit • http://www.epu.jpm.my • Ministry of Finance • http://www.treasury.gov.my • Bank Negara Malaysia • http://www.bnm.gov.my • Department of Statistics, Malaysia • http://www.statistics.gov.my
scientist’s objectivity. – They make appropriate assumptions and build simplified models in order to understand the world around them. – Two simple economic models are the circular-flow diagram and the production possibilities frontier.
– Microeconomics is the study of decision-making by households and firms in the marketplace. – Macroeconomics is the study of the forces and trends that affect the economy as a whole.
the world is. • A normative statement is an assertion about how the world ought to be. • When economists make normative statements, they are acting more as policy advisors than scientists.
conflicting advice either because of differences in scientific judgments or because of differences in values. • At other times, economists are united in the advice they offer, but policymakers may choose to ignore it.
Stream Theory: An Employee-Centered Hybrid Management System for Achieving a Cultural Shift through Prioritizing Problems, Illustrating Solutions, and Enabling Engagement
Stream Theory: An Employee-Centered Hybrid Management System for Achieving a Cultural Shift through Prioritizing Problems, Illustrating Solutions, and Enabling Engagement
