The Equlibrium Process Paper

Running head: THE EQULIBRIUM PROCESS PAPER

The Equilibrium Process Paper

University of Phoenix

Kelvin Joiner

Most would say that economics is termed as the social knowledge to be associated with exactly how persons, establishments, and society manages to optimize the preferences that appear in the situations of scarceness (McGraw-Hill, 2009, p. 38). An alternative definition of economics is the analytical choices made by individuals regarding the scarcity of a certain resources production. The limited resources of such as goods and services under demand are why scarcities occur. Consumers will make choices based on the evaluation among the marginal costs and benefits.

There are two types of economics macroeconomics and microeconomics. Macroeconomics views the economy of the organizations entirely while microeconomics views the economy of at a small portion. For example, macroeconomics, are guidelines that are defined by the government, macroeconomics is the branch of economics concerned with aggregates, such as national income, consumption, and investment in households, and business sectors(macroeconomics.htm). In microeconomics, the economical rules have been initiated by the direct decisions of the consumers, employees, households, and the corporations. Currently there are two categories of methodologies in the economy the market system and command system. The market arrangement of free enterprise is when individuals have possession of for the most part of the all the resources and mold the behaviors. In capitalism individuals also have the independence to engage in activities that benefits them directly. The command method is socialism or communalism this means that all manufactured goods belong to a centralized unit the trade and industry movement is monitored using a predominant government department. Principal Directors govern the range of commodities to be manufactured, and distribute basic provisions, set-up quotas for each...