Macroeconomics: Assessing Different Economies & Achieving Economic Goals - Essay Sample

Introduction

Macroeconomics is the study of economies of different countries. Macroeconomics helps in the assessment of different economies in different countries to ensure that the country has a good economic action plan compared to other countries to ensure they have good strategies for a better economic state In the future. Principles of economics ensure that the economies are run well. These are set of rules that ensure that the economic goal of a country are achieved using the correct way to curb future problems.

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The ten principles of microeconomics include; People face trade-offs, rational people think at the margin, the cost of something is what you give up to get it, trade can make everyone better off, people respond to incentives, Governments can sometimes make market outcomes, market are usually a good way to organize economic activity, a country's standard of living depends on its ability to produce goods and services, society faces a short-run tradeoff between inflation and unemployment and prices rise when the government prints too much money.

For us to gain a goal we have to sacrifice another goal therefore to accomplish on economic win we have to forego another. Thus can also be used to mean that we can't gain to goals therefore one win at a go. This is evidence enough for the first principle which states that people trade-offs. However, the cost of something is what you give up to get it. The risks taken to win a goal and the steps taken to ensure the goal is reached are the actual cost of the item or unit used. However, rational people think at the margin. Consumers are ready to spend on the item that gives them most of satisfaction. Satisfaction is based on the amount of time they take effect on the consumer. Incentives offered are used to alter how people behave.

To some people it may make them behave on the positive side while other behaves on the negative side. The level of income or disposable funds is highly affected by the amount of incentives offered. On the other hand trade makes people better off. People benefit from trade as they engage in the activity to ensure that they make profits and gain financial advancements. Markets are also another way to organize the economy. Different players of trade ensure that they offer market to a given set of products. The market determines the type of product produced and the quality to which it should be produced. Governments are also a good pace setter in most of the economies as it determines the type of produce created and the level to which it should meet. Different governments offer different roles in the level of outcome as they give financial support which is involved in cutting the cost of production to determine the overall cost.

A country's standards of living also depend on the ability to produce goods and services. Countries that produce their own goods and services offer solutions to the gaps created by the different needs of the citizens. Producing our own goods and services will ensure we satisfy our own needs and produce extra goods to cater for the needs of other countries which will be used in international trade. International trade is crucial in giving financial freedom to most of the citizens in different countries therefore the ability to produce more goods gives the country the ability to gain incomes from financial trade. However, the government printing too much money makes the level of inflation rise which makes prices of commodities lose value therefore; a country that prints too much money such as Zimbabwe is at risk of eventually having o place in the international trade. Unemployment and inflation is inseparable. Increase in level of inflation makes it hard for the economy to make financial progress as they don't have enough income to create jobs for the people therefore increase in inflation causes a rise in unemployment and vice versa.