AT&T LTE 8:54 PM * 69% Although Susan Taylor knows that economics is the study o
ID: 385905 • Letter: A
Question
AT&T LTE 8:54 PM * 69% Although Susan Taylor knows that economics is the study of human behavior and decision making, she has asked you to explain how the principles of optimization, equilibrium, and empiricism distinguish economics from other social sciences and how you will be using each of these three principles in your analysis of Car Eagle Research the three economic principles and begin to draft your answer to the questions posed by Susan. The study of economics is based on the premise that all resources are limited not only in available quantity but also in practical utility, but other social sciences deal with understanding and establishing causal relationships between actions, behaviors and events in human existence. Economics seeks to anticipate, understand and explain current human activity rather than past activity. Optimization: Finding an alternative with the most cost effective or highest achievable performance under the given constraints, by maximizing desired factors and minimizing undesired ones. In comparison, maximization means trying to attain the highest or maximum result or outcome without regard to cost or expense. Equilibrium: Economic equilibrium is a condition or state in which economic forces are balanced.... Economic equilibrium may also be defined as the point at which supply equals demand for a product, with the equilibrium price existing where the hypothetical supply and demand curves intersect Empiricism: Economic analysis that uses data or analysis that is evidence- based.Explanation / Answer
MicroEconomics and MacroEconomics, two divisions of Economics are studies of how individuals and groups behave to make choices or negotiate for choices to opt for scarce resources.
Optimization; This is done to study human choices at large. However different individual choices may be, the more macro the view is, the more clustered the choices or behavior appear. So, In a sense Economics study human behavior by identifying their decision-making capabilities by seeing the cost-benefit analysis of other alternatives one undergoes while evaluating choices. Opportunity Cost is an important aspect.
Equilibrium: The study of economics also deals with the principle of equilibrium. The state is hypothetically a scenario where the alternative choices and the actual choice weigh equal in the cost-benefit aspect and anyone can be pursued.
Empiricism: This principle deals with human behaviors that are based on historical patterns of data. This principle uses analysis to reach a conclusion. The cause and effect scenarios are analyzed before making a choice.