all of the following topics fall within the study of microeconomics except
micro guide 6.docx
Kiran Temple University Fox School of Business ‘17, Course Hero Intern
c. the effectiveness of antipoverty programs in reducing homelessness.
a. the impact of cigarette taxes on the smoking behavior of teenagers.
The study of economics in developing nations, development economics (or the economics of development) uses economic theory to look at ways of promoting economic growth, increasing employment, understanding inequalities and improving wealth distribution. Research in this field may look at issues such as market restructuring, international intervention, local customs and politics, the multidimensional aspects of poverty, and different approaches to measuring development.
An increasingly prominent field of research, organizational behavior is the study of how individuals behave within an organization, and how workplace behavior can be influenced, with the aim of contributing to the development of principles of effective communication, problem-solving and decision making.
These methods attempt to represent human behavior in functional mathematical language, which allows economists to develop mathematically testable models of individual markets. Neoclassicals believe in constructing measurable hypotheses about economic events, then using empirical evidence to see which hypotheses work best. In this way, they follow in the “logical positivism” or “logical empiricism” branch of philosophy. Microeconomics applies a range of research methods, depending on the question being studied and the behaviors involved.
Microeconomic study historically has been performed according to general equilibrium theory, developed by Léon Walras in Elements of Pure Economics (1874) and partial equilibrium theory, introduced by Alfred Marshall in Principles of Economics (1890). The Marshallian and Walrasian methods fall under the larger umbrella of neoclassical microeconomics. Neoclassical economics focuses on how consumers and producers make rational choices to maximize their economic well being, subject to the constraints of how much income and resources they have available. Neoclassical economists make simplifying assumptions about markets—such as perfect knowledge, infinite numbers of buyers and sellers, homogeneous goods, or static variable relationships—in order to construct mathematical models of economic behavior.
Aggregate demand met by the market is spending, be it on consumption, investment, or other categories.
Economics is comprised of many specializations; however, the two broad sub-groupings for economics are microeconomics and macroeconomics.