Mallon for Senate
Explain the similarities and differences between microeconomics and macroeconomics.
Macroeconomics analyzes the economic behavior of the entire industry rather than performing and analysis per company. By doing this, the Gross National Product (GDP) can be calculated to preview unemployment, national income, price rates and growth rates.
Microeconomics analyzes each business and personal decision made by companies and consumers to measure the supply and demand of goods and services. With this analysis, organizations can determine how much to produce and what rates to sell at.
Explain the concept of opportunity cost and why it is an important economic concept.
Trade offs result in opportunity costs as scarcity creates trade offs meaning that opportunity cost is a relative price of an item compared to the price of another item. In a sense it’s the advantage cost of a product over another.
Suppose that more companies receive permission to drill for oil in Alaska and U.S.-controlled waters. In addition, assume that the popularity of SUVs declines in favor of smaller, more fuel efficient automobiles. What will be the result on the market (supply, demand, price, and quantity) for oil in the U.S.? How does this move the supply and demand curve?
If drilling in Alaska would produce more crude oil meaning that our supply would increase, if the demand for SUVs declines, the price of gasoline would go down, as there would not be a high demand for fuel. It would move the supply and demand curve to the left (or inward).
Explain what factors would increase the supply (shift the supply line to the right) of a manufactured product like white bread and what factors would cause a decrease in demand (shift of the demand curve to the left) for that same product.
Factors that increase the supply of the product would be change in population, consumer...