Week1ECO372.doc - 3 Economists use four of what is known as...

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1 Ten Principles of Economics and the Data of Macroeconomics Jennifer Boggan ECO/372 September 25, 2017 Bill Morrison
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2 This report is to aid the strategic planning committee of our company in becoming more familiar with current economic thought and principles. I will explain this concept in detail, including defining economics as a whole and explaining how economists are both policymakers and scientists in their decision making. Using a circular flow model, we will see the flow of money and goods in the economy. We will also discuss the Consumer Price Index and Gross Domestic Product and how they are defined and used. Economy and Economists To be able to understand economics and the job of economists, we need to define them. Economics is defined as “The theories, principles, and models that deal with how the market process works. It attempts to explain how wealth is created and distributed in communities, how people allocate resources that are scarce and have many alternative uses, and other such matters that arise in dealing with human wants and their satisfaction.” ("economics," 2017). Using this definition, we are able to see the job of economists, which is to study the trends of the economy and make suggestions and assumptions on that data. Similar to a chemist performing physical tests of a chemical compound, Economists collect and examine data in a similar way. They use the data from various sources, manufacturers, buyers and sellers, and develop theories on how resources are used and how they can be managed.
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