Economic 6

Week 6 Reflection

Learning Team C:

October 29, 2012

Genevieve Turano

Week 6 Reflection

As a team we gave our opinion on how economic has affected our present career and future career. We found it intriguing how the government and private sector business measures growth and how they use past economic data to infer about the future of the economy. However, as McConnell, Bruce & Flynn describe in Economics, the data does not guarantee the economy will react that way. The United States just like the rest of the world has transformed into an international economy, so when something happens to cause a reaction in one country's economy more than likely it will have an effect on the US economy. It is imperative for businesses to forecast based on current economic conditions, but have the ability to be flexible for those unforeseen economic problems. 

Microeconomics

Economics by McConnell, Bruce, & Flynn lays the foundation by teaching microeconomics in detail. During this time consumers view economic opportunity as well as businesses. A company will be categorized into one of four market structures: (a) perfect competition, monopolistic competition, oligopoly and monopoly. No matter which market structure a business is their main objective is to increase revenue. Businesses accomplish this by analyzing the marginal cost, marginal review and total cost. Reviewing these three components will give the company information to make well-informed decisions in order to increase revenue. In addition, it is important to not only review the explicit cost but also the implicit cost. Including the implicit cost will give an accurate account of all spending and profit. 

Macroeconomics

During the macroeconomics portion the team learned how the government influences the economy, through a different entity called the Federal Reserve, also known as The Fed. The Fed has the capability to put in place different monetary policies to try and keep the economy as...