Accounting Question

Part 1 complete discussion

Is Economics a social science? Please justify your position by explaining what is the study of economics.

Additionally, does microeconomic or macroeconomic activity have a bigger impact on prices in your opinion and why?

Part 2 reply to discussion

Is Economics a Social Science?

Yes, economics is a social science. It studies how people, companies, and governments decide to use their limited resources to fulfill their needs and wants. Economics looks at the choices these groups make and how these choices affect the creation, distribution, and consumption of goods and services. It also examines how people respond to incentives and how markets operate (Schiller & Gebhardt, 2020).

Microeconomic vs. Macroeconomic Activity Impact on Prices

Based on our readings this week, microeconomics focuses on individual consumers and businesses. It analyzes how they decide what to buy and sell, and at what prices. Factors like supply and demand, the costs of producing goods, and competition directly influence prices within specific markets. For example, if a product becomes very popular but there aren’t enough of it, the price will likely go up (Schiller & Gebhardt, 2020).

Macroeconomics looks at the economy as a whole. It studies broad factors like national income, inflation, and unemployment. Policies that affect the entire economy, such as changes in interest rates or government spending, influence the overall level of prices. For instance, if the government spends more money to boost the economy, it can lead to higher prices for many goods and services because more people are buying them (Schiller & Gebhardt, 2020).

Both microeconomic and macroeconomic activities affect prices, but they do so in different ways. Microeconomic activities impact prices in specific markets, while macroeconomic activities affect the general price level throughout the economy. Overall, macroeconomic activity has a bigger impact on prices because it influences the wider economic environment, affecting prices across all sectors.

Reference:

Schiller, B. R., & Gebhardt, K. (2020). Essentials of Economics (11th ed.). McGraw-Hill Education.

Part 3 reply to discussion

Is Economics a social science? Please justify your position by explaining what is the study of economics. Additionally, does microeconomic or macroeconomic activity have a bigger impact on prices in your opinion and why?

Yes, Economics is a social science. Economics studies how goods and services are produced, distributed throughout the economy, and consumed by individuals and businesses. Economics is also concerned with how governments and businesses allocate resources to satisfy the wants and needs of consumers. Economics plays into every decision you make, no matter how small it may seem. (Peters, 2023)

Microeconomicsvs. Macroeconomics

Microeconomics is the study of decisions made by people and businesses regarding the allocation of resources, and prices at which they trade goods and services. It considers taxes, regulations, and government legislation. Microeconomics focuses on supply and demand and other forces that determine price levels in the economy and tries to understand human choices, decisions, and the allocation of resources.

Macroeconomics, on the other hand, studies the behavior of a country and how its policies impact the economy as a whole. It analyzes entire industries and economies, rather than individuals or specific companies. (Team, 2023)

Additionally, does microeconomic or macroeconomic activity have a bigger impact on prices in your opinion and why?

Microeconomics is impactful on individual level whereas Macroeconomics focuses on the bigger impacts on economy. While the two are very different, both impact each other. They both impact prices differently but on a different scale. Macroeconomics activities have an impact on the economy as a whole, like inflation and unemployment, macroeconomics emphasizes the broad trends that have global implications. Microeconomics activities focus on smaller concerns that involve individual people, families, or entities. Overall, macroeconomic activity has a bigger impact on prices because it affects the bigger economic environment, influencing prices globally. (Central Michigan University, 2023)

Part 4 complete discussion

There are four types of unemployment discussed in our textbook. Please define at least one type and provide an example of this type of unemployment. Please try to provide unique examples rather than just repeating an example of another student.

Part 5 reply to discussion

Greetings Prof. Frazier and Classmates,

Based on our reading this week, I would like to discuss one of the types of unemployment which is frictional unemployment. This is when people are between jobs for a short time. It happens because it takes a bit of time to find the right job. This can be when someone finishes school and is looking for their first job, or when someone leaves a job to find a better one. It’s like a natural part of the job search process.

It’s important because it helps people find jobs that fit them better and allows the economy to adjust to changes. For example, someone might need time to find a job that matches their skills and interests. This type of unemployment is usually temporary and can even be a good thing because it means people are looking for better opportunities.

An example of this could be one of our classmates, who is in a degree program like many of us or graduating from their specific program college and is looking for their first job or start their career. They would have to send out resumes, going to interviews, and waiting to hear back from potential employers. During this time, they are technically unemployed because they don’t have a job yet, but they are actively searching for one. Once they find a job, they won’t be frictionally unemployed anymore.

Part 6 reply to discussion

Greetings Professor and class,

There are four types of unemployment discussed in our textbook. Please define at least one type and provide an example of this type of unemployment. Please try to provide unique examples rather than just repeating an example of another student.

The unemployment I chose to discuss is Structural Unemployment. Structural unemployment is long-lasting unemployment that comes about due to shifts in an economy. This type of unemployment happens because though jobs are available, there’s a mismatch between what companies need and what available workers offer. One of the primary causes of structural unemployment is technological changes. As industries move from one process to another and harness technological capabilities, many jobs and roles become obsolete. Structural Unemployment is a more severe form of unemployment compared to the other types of unemployment. (Kenton, 2023)

Structural unemployment may be caused by poor training or a lack of education programs. As workers get replaced by more efficient processes, workers must adapt by learning new business practices. Should they fail to do so, they may perpetuate structural unemployment by not having an appropriate skillset.