Macroeconomics Choice, Opportunity Costs, and Specialization?
Janine is an accountant who makes $30,000 a year. Robert is a college student who makes $8,000 a year. All other things being equal, who is more likely to stand to stand in a long line to get a concert ticket? Explain.
Macroeconomics question?
Explain how the Production Possibility Frontier (PPF) brings together the concepts of scarcity, choice, and opportunity cost, and why economists prefer the Principle of Comparative Advantage over the Principle of Absolute Advantage for specialization and trade.
What do you learn in AP macroeconomics?
According to Wikipedia:Basic Economic Concepts (8–12%)EditScarcity, choice, and opportunity costsProduction possibilities curveComparative advantage, absolute advantage, specialization, and exchangeDemand, supply, and market equilibriumMacroeconomic issues: business cycle, unemployment, inflation, growthMeasurement of Economic Performance (12–16%)EditNational income accountsCircular flowGross domestic productComponents of gross domestic productReal versus nominal gross domestic productInflation measurement and adjustmentPrice indicesNominal and real valuesCosts of inflationUnemploymentDefinition and measurementTypes of unemploymentNatural rate of unemploymentNational Income and Price Determination (10–15%)EditAggregate demandDeterminants of aggregate demandMultiplier and crowding-out effectsAggregate supplyShort-run and long-run analysesSticky versus flexible wages and pricesDeterminants of aggregate supplyMacroeconomic EquilibriumReal output and price levelShort and long runActual versus full-employment outputEconomic fluctuationsFinancial Sector (15–20%)EditFinancial sector:Money, banking, and financial marketsDefinition of financial assets: money, stocks, bondsTime value of money (present and future value)Measures of money supplyBanks and creation of moneyMoney demandMoney marketLoanable funds marketCentral bank and control of the money supplyTools of central bank policyQuantity theory of moneyReal versus nominal interest ratesInflation, Unemployment, and Stabilization Policies (20–30%)EditFiscal and monetary policiesDemand-side effectsSupply-side effectsPolicy mixGovernment deficits and debtInflation and unemploymentTypes of inflationDemand-pull inflationCost-push inflationThe Phillips curve: short run versus long runRole of expectationsEconomic Growth and Productivity (5–10%)EditEconomic Growth and Productivity:Investment in human capitalInvestment in physical capitalResearch and development, and technological progressGrowth policyOpen Economy: International Trade and Finance (10–15%)EditBalance of payments accountsBalance of tradeCurrent accountCapital accountForeign exchange marketDemand for and supply of foreign exchangeExchange rate determinationCurrency appreciation and depreciationNet exports and capital flowsLinks to financial and goods markets
What can you do with an economics degree?
Economics as a career, is trending nowadays. It is an important discipline both for career as well as from job point of view. A proper graduation, masters degree in the same would earn a reputed respectable job or open opportunities for M,Phil , PhD. The subject is very logical and requires proper understanding and implementation of the concept and a strong hold over mathematics is a must.Below are a few professional opportunities this subject brings with itself.Banking Firms and Financial Institutions: A BA economics can enter banking sector and study the rate of interest and its effect of banking system. They advice and provide services to various clients and consumers. One can work in institutions such as World Bank or RBI.Insurance and Accounting firms: They focus on monitoring the financial situation of an organization, business or individual. This field requires strong analytical skills, mathematical proficiency & computational ability.Research firms and think tanks: They study and analyse the economics issue. One can be employed in business organisation, non-profit organization or an advocacy sector. One might even head one’s own research and consulting firm.Lecturer: You can also enter a teaching line and become a professor in the University. To enter this field you need to first complete your masters degree and then write NET examination.Actuarial Science: Actuarial science is another field you can look at. Actuaries are business professional who work in the insurance company to assess the risk in the insurance business. These professionals specialize in various fields such as health, life, medical, casualty, pension, etc. They use their knowledge of mathematics, statistics, finance, economics, etc. to determine the premiums and reserves for insurance policies.Besides the above mentioned field you can also work for retail stock, share broking, FMCG, data analysis, and write competitive exams according to your personal interest and attributions.Some Top CollegesShri Ram College of Commerce, New DelhiLady Shri Ram College of Commerce, New DelhiSt. Stephen's College, New DelhiLoyola College, ChennaiIndian Institute of Technology (IIT) - KharagpurDelhi School of Economics, New DelhiChrist University, BangaloreFergusson College, PunePlease note: The mentioned institutions are in no particular order.Hope you find this helpful. All the Best!Disclosure: I am a Career Counselor and Expert at Mindler.
What does a straight line production possibility mean?
A production possibility curve (PPC) shows the different combinationstyles of output of TWO goods that an economy can produce considering the factor of production and technology to be constant.The slope of a PPC gives the trade off/opportunity cost (What amount of Good 2 has to be given up in order to produce an extra unit of Good 1).If the PPC is a straight line, it implies that the slope is constant. I.e to produce an additional amount of Good 1 the economy would have to give up a constant amount(=opportunity cost) of Good 2 no matter how much amount of each item is being produced.
Should I go for Masters in Economics or MBA?
More than anything else, I think you should take out a few moments and think about the kind of career or work options you hope to pursue after your masters.- If it's the kind of career where you'll likely be working alongside MBA graduates and doing similar work (finance, consultancy, retail) then I would suggest going for an MBA. Like others here have pointed out, MBA may or may not be the kind of education from which you learn a lot, but for many career streams it's either a prerequisite or highly rewarded in terms of career advancement and pay. Believe me, you wouldn't like to be doing the same work as your MBA colleague and getting less pay than them, just because you don't have your MBA degree. I work for a consultancy firm where my work is hardly related to my masters degree in economics, and sometimes I feel handicapped because I don't have an MBA like others in my team do, just because some people attach more importance to degrees than what you actually bring to the table.- If, on the other hand, you want to keep your options open and are equally interested in going for (say) good-quality research, treasury banking, academic or specialized jobs where only a masters degree in economics would be of use, then consider going for this specialization. These are well paying jobs that would sustain your interest and keep throwing challenges your way, something that's not guaranteed in a lot of generic "MBA-type" corporate careers.So, think about what you may want 10 years from now, before you make this decision. If, like many others (including me), you have no clue what that might be... well, try relying on secondary indicators such as your own interest, cost of getting the degree, repute of the institution to which you're likely to make it, etc.
What is a production–possibility curve?
A Production Possibility Curve or just PPC simply shows the amount of 2 goods an economy can produce with its given resources and technology at any given period of time.It works on the following two assumptionsTechnology given will remain constant.The resources of the economy will be fully utilised. This includes all resources - human, natural, man made etc.The x axis is taken as one good and the y axis as the other. The curve depicts the production potential of the economy. Usually no economy operates on the curve since it is nearly impossible to utilise all resources. They all operate inside the curve. For example if you take the point (5,4) which lies inside it, this means the economy is producing 5 units of Good X while producing 4 units of Good Y. The curve is convex to the origin and downward sloping because of a concept called Marginal Opportunity Cost. MOC is defined as the number of units of good sacrificed to increase the production of the other good by 1 unit. So if the MOC of X is 5 this means 5 units of Y need to be sacrificed in order to produce one unit of X. This concept is pure logic because if you think about it the people who are efficient in production of Y will not be as efficient in production X therefore more and more people will need to shift from Y to X thereby reducing the units of Y. Again it only represents where the economy CAN operate not where it WILL operate.An increase in resources and/or technology will lead to a rightward shift as there will be an increase in the potential and vice versa if the resources get destroyed. It's a pretty interesting concept. Hope this helped.
How would you define economics in your own way?
It is the study of the production and distribution of goods and services within a society, in view of scarce resources, trade-offs, and opportunity costs.Source: A brief Introduction to Economics - Quickonomics