Economics 2153A/B Study Guide - Final Guide: Constrained Optimization, Excess Supply, Project A
Document Summary
The analytical tools underlying nearly all microeconomic studies are: Microeconomics examines the economic behavior of an entire nation. the economic behavior of individual economic decision units. topics such as national income and inflation. monetary policy. An endogenous variable is a variable that an economic agent chooses. consumption, investment or government spending. a variable determined within the economic system being studied. a variable pertaining to the home country economy. In general, economics is the study of the allocation of scarce wants to unlimited resources. the allocation scarce resources to unlimited wants. the allocation of resources between the government and the private sector. the allocation of workers between firms. Identifying the appropriate way to allocate an economy"s resources is an example of a constrained optimization problem. a comparative statics problem. an equilibrium analysis. marginal analysis. The set of exogenous variables in any economic model should take into account the rich detail of the world and so should be limitless.