Introduction to Puaeconomics

Index: 

1.1 Economics: micro, macro and pua

1.2 The economic way of thinking

1.3 Supply and Demand

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1.1 Economics: micro, macro and pua

"Economics is the science of human choice in which resources are limited in relation to human wants, assuming that individuals are rational maximizers of their own self-interest."
(R.Posner, Law and Economics, p.3)

Let's unpack that.

Firstly, it should be understood that the science of economics is not solely applicable to the expenditure of money. A decision that is "economic" may not always encompass things of this nature. For example, it is likely that you have heard of phrasing such as "the most economic decision" being applied to topics which are not at all to do with money.

Instead, economics revolves around "human wants" and hence, also how you obtain or achieve those ideals. How do you go about getting that dream job? That dream car? That dream girl? That dream cake? one of these is a lie

And importantly, were the 'means' worth the 'end'.

But, it is paramount that you understand "limited resources" must be taken into consideration. For if you had all the money in the world, what couldn't you buy. So, now is the time to do a stocktake of your 'wallet', my students. 

A Breakdown of the Categories of Economics

Micro

• deals with individual households, firms, industries and markets
• focusses on: relative prices, allocation of output, employment etc.
• policy issues include: minimum and maximum pricing schemes, taxes and subsidies, tariffs and quotas on international trade, licensing and other entry restrictions

Macro

• deals with the economy as a whole, including both the financial and real sides
• focusses on: the overall price level, aggregate output, aggregate employment and unemployment
• interest rates and exchange rates
• policy issues include: monetary policy, fiscal policy, wages or incomes policy

PUA

• deals with the population of the preferred gender as a whole, including both physical, psychological/emotional and sometimes spiritual components, nevertheless, different markets will be discussed
• focusses on: the overall afc level, aggregate putting-out, aggregate employment and unemployment of the potential labour pua force
• examines interest rates and exchange rates of a different nature to that of macroeconomics
• policy issues include: -TBA-

Of course, only puaeconomics will be discussed in this unit.

NEXT TIME: 1.2 The Economic Way of Thinking

Labels: puaeconomics, PUE8800