BUS 600-SP10, Day 8: Economics

There are two level of economics: Micro and Macro.
Micro economics is focus on basic concepts of economics.
Opporutnity costs is the cost of choice, when output, time and money are limited.
The Supply and Demand chart shows that when price goes up, producer will have higher incentive to manufacuture, so supply will increase, but demand will decrease due to higher price. On the economy level, we have similar aggregate supply (AS) and aggregate demand(AD) chart.
There are two level of economics: Micro and Macro.
Micro economics is involved in basic concepts.
In micro-economics, we learned opportunity costs, marginal revenue and cost, marginal utility, price elasticity of demand, competitive market sturctures.
On Macroeconomics, we learned the KEYNES and FRIEDMAN concept. They are like the democratic and republic, always argue, I believe they both partially work.
Also we learned GNP, NNP and GDP.
The multiplier effect shows that economy is very easily to go extream. This explains why we either in bubble time or in recession time.