My class talk about "What are three (3) economic concepts that you think you will remember from this "Macro Economics."

I must involve about "at least three paragraphs long, one for each concept. In these paragraphs I am looking for you to first identify and describe a concept, and then to further discuss a specific way in which you will likely be able to apply the concept in your own life in at some point the future".

Thus, Which answer do you think meets the requirements??? Please make up for any deficiencies.

1)Scarcity

It explains the basic economic problem that the world has limited or scarce resources to meet the unlimited wants of human beings, therefore human beings are forced to make decisions about how to allocate resources in the most efficient way. Scarcity explains the basic economic problem that the world has limited or scarce resources to meet seemingly unlimited wants they require. Take for instance there is only so much wheat grown every year. Some people will want bread, and some would prefer beer. Only so much of a given good can be made because of the scarcity of wheat. We can apply the supply and demand market system to help us decide how much flour should be made for bread and how much wheat should be made for beer production.

2) Supply and Demand

It is an economic model of price determination in a market whereby, holding all condition constant, in a competitive market, the unit price for a particular good, or other traded item such as labor or liquid financial assets, will vary until it settles at a point where the quantity demanded, at the current price, will equal the quantity supplied, at the current price, resulting in an economic equilibrium for price and quantity traded. Take for example of a commodity such as beer, if many people want to consume beer, the demand for beer will be increase. As a result, you can charge more for beer and make more money on average by using the wheat available to make beer than by using wheat to make flour. By so doing this could lead to a situation where more people start making beer and, after a few beer production cycles, there will be so much beer on the market resulting to an increase in the supply of beer hence the price of beer drops.

3) Unemployment

I think important component of macroeconomics is unemployment. Unemployment comes in three forms which are cyclical, structural, and frictional. Cyclical unemployment is caused by the deterioration of the business cycle. This kind of unemployment is temporary and only occurs when the economy is shrinking. Examples of cyclical unemployment can be given because companies are not selling enough and cannot afford to pay them because of the recession. Second, structural unemployment occurs if the skills of the worker do not meet the skills required by the employer. An example of structural unemployment is a typewriter repairman, which may have been necessary in the 1950s, but because no one already has a typewriter, the typewriter repairman is out of work. Third, the frictional unemployment that workers have just joined. An example of frictionally unemployed people is quitting their jobs and looking for a new one. Finally, the natural concept of unemployment rate is key to understanding the macroeconomic unemployment rate. The natural unemployment rate is a combination of structural and frictional unemployment that exists in an efficiently expanding economy in macro-balancing. Basically, there is no cyclical unemployment and no unemployment at all. Friction and structural unemployment will inevitably occur because there are always people who do not have the skills to do their jobs or unemployed.

1)    Demand and supply economics in the macroeconomics is thus the concept which helps to describes manner in which supply and demand affects the economy .For instance in the micro economic concept which in detail studies the effects of demand increase and demand decrease and thus also supply increase and supply decrease and also contains the concept of equilibrium which refers to that economy will find its own point where supply meets demand and forms an equilibrium which becomes standard price for supply.

2)    Elasticity in the macroeconomics is thus the adjustment of demand with increase or the decrease in price for instance variable of the goods in the market and each good is totally different and each good has separate tendency to react with increase or decrease in price thus the elasticity measure reaction of such goods for the increase or decrease in the prices and thus various forms of the elasticity which includes the income elasticity which changes with changes in income and also price elasticity with changes with price

3)    Also the consumer demand theory which is a theory in macroeconomics that helps to research on the preferences of consumption related to consumer expenditures and thus took studies broader concepts of consumerism thus also there are many points related to spending of the consumer for instance if the economy is very good even in higher prices consumers are likely to buy more but in general economy is bad even with discounts consumers are unlikely to buy more. Thus macroeconomics refers to branch of economics that helps to study the behavior and the performance of an economy as a whole and focuses on the aggregate changes in the economy which includes the unemployment ,gross domestic product and the inflation .

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