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Unformatted text preview: clouds reality.There may be unintended consequences. Example: Minimum Wage We would love to have the minimum wage rise ,but the reality is this would put a lot of people out of jobs. It would create discrimination among employers. Distinction Macroeconomics vs Microeconomics *Mercantilism: Business people 1700s. The way you make profit, they have to sell more than they buy. Need resources to produce output. Sales Receipt -Purchase resources to produce output profits. David Ricardo: “ The way we specialie is by opportunity cost.” When economy is producing at one point more of one product, there is always going to be less from the other. Trade-offs are involved in most policy decisions. Economic advisers write the Economic Report for the president....
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This note was uploaded on 11/10/2011 for the course ECO 2301 taught by Professor Green during the Fall '11 term at Sam Houston State University.
- Fall '11