Theories And Models That Are Represented In Microeconomy

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Theories and models that are represented in microeconomy

The economy is the science of the choice, nothing is free, everything has a value, the opportunity cost details “something must be delivered to obtain something”, closely related to the border of production possibilities (FPP) the cost of opportunity indicates that or not to produce, choose or determine priority of which it has the best investment, also depending on the productive factors they hold, thus creating the impulse towards alternate products for example a company that sells laptops and desktop PC, will be found In a dilemma due to demand and the current situation, more laptops need to be produced by reducing a PC production due to limited resources (personal, raw material, among others), they cannot totally sacrifice PCs, since different economic needs of the families and students who are our main clients would go to the competition can not be completely abandoned because our industry Take these two things, but now society demands more of a certain product and we will have to do it in a more effective way.

When we refer to microeconomics dilecons, it is when there are two things to opt for one that is to have alternatives, in the market we can say that the consumer has the option of spending their resources on an endless product or saving for the future, andIf you decide to invest and acquire a product, you will make the decision on which you give you more well -being against similar ones depending on your preferences.

Workers have restrictions and should choose for example or job position, for example, if there is a good pay and a bad time that does not allow them to be with their family and there is another one that pays less, but it has flexible schedules, depending on your interest, this will be addressed by one when getting a job.

In the case of companies, it has limits on products offered depending on their subject, budget, traffic, machinery, will have its limitations to the now choose to produce or increase.

Prices and markets

It arises with the arrival of the currency, the price is the regulatory entity, it is the wheel of the market balance and this in turn determines the value depending on the supply and demand due to the greater demand of the consumer and little offer the price rises so is the"Law of supply and demand", is also considered the price or value estimated by the State, and the items that are added as taxes, also considering the country, and the salary or salary of the worker.

The market is the place where all kinds of physical or virtual products are offered where the action of the merchant or producer is exercised. According to (Samuelson & Nordhaus, 2010) the market mechanism is based on the following system and the same author separates them in (structure)

Theories and models

The economy is based on theories, these simplify the relationships to be discovered between the observed phenomena and the assumptions and the economic models imply the cause and effect thus explaining behaviors, especially the decisions made by economic and financial entities giving appropriate or even answersPerform predictions for example if raw materials this year increase or go down.

In this field, statistics also enter because it can be used to create economic models that involve the behavior of individuals such as the "production possibilities border" model.

No theory is absolutely correct its validity depends on what you want to reach, when the theories are evaluated, the evaluation of the variables is essential, thus maintaining an observation order, it is not a luxury is a need to theorize.

For that we can rely on the scientific method for correct field research. (Mochón, 2006)

Positive analysis against a normative analysis 

The positive analysis "describes the causes of cause and effect" (Pindyck & Rubinfeld, 2009) and according to the same author cited the normative analysis "issues about what should be"

The economy covers these two concepts because these theories are necessary to develop and give an explanation through observation to constant phenomena to create models are vital for predictions both in companies and in the policies of a nation.

The regulatory analysis tries to reflect reality with statements and regulatory V amashed beyond the predictions.

For example, remove taxes technological devices, in positive analysis, more people can acquire these products and in the normative analysis, questions will be given as if consumerism, technological waste, greater output of money from the country will increase, that is a topic forPolitically considering this dilemma has always been a topic of debate.

Great questions from the economy

  • What goods and services and what amounts?
  • What determines that more products are created?
  • How do the elections change in the course of time?
  • How do you affect technology in the goods and services?
  • Why do we use people in some and in other machines?
  • Do we get worse or improve?
  • How do goods and services occur?
  • When are goods and services?
  • What causes production to fall?
  • Where are goods and services produced?
  • What determines where goods and services occur?
  • Who consumes the goods and services that occur?

These questions can be answered of a social nature in simple lines, but in themselves they are very broad depends on the economic activity we are doing and endless variants, such as the situation of the country, the type of people to whom it is addressed, social stratification, in themselves are more questions and all chained to the same purpose, in my criteria I could say that these questions should be answered when you have a destination activity.

I put an example of a car laundry

  • What goods and services and what amounts?

Goods offered products, shampoo, machinery, service of assistants used, among others.

  • What determines that more products are created?

The winter time in which cars have to be dirtier

  • How do the elections change in the course of time?

Through the expansion of my activity I could make my customers also oriented a lubricator of my property

  • How does changes in goods and services affect technology?

Have to get rid of old machines and replace them and generate an extra expense

  • Why do we use people in some and in other machines?

There are specific tasks for machines such as getting to places where you can’t get, and humans to handle them, but artificial intelligence is handled, but the human mind always be one step ahead

  • Do we get worse or improve?

We are improving for Covid all cars come for a disinfection that is also given at home

  • How do goods and services occur?

Through human effort and tools

  • When are goods and services?

When the customer decides to wash their vehicle for an event or simple presentation

  • What causes production to fall?

The low influx of cars or aggressive competition

  • Where are goods and services produced?

In a given territory

  • What determines where goods and services occur?

The highest influx of customers

  • Who consumes the goods and services that occur?

Vehicle owners

conclusion

The economy is the science of the decision to choose between one thing and another personally, business or political issues, renouncing another object with the only vision that it benefits us successfully will not be given so, it is not a decision toThe light    

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