BMAL 590 Microeconomics Academic Leveling Course Q&A

When we refer to "individual" action, we are referring to: - ANSWER a variety of actors that in microeconomic terms can be referred to as sellers (producers) and buyers (consumers). These actors influence the supply of and demand for goods and services. The means for achieving coordination are generally money and interest rates. normative science - ANSWER the idea that science follows objective rules of evidence and is unaffected by the personal beliefs or values of scientists Microeconomics can be considered a normative science. It does not prescribe a course of action. Rather, it tries to explain what might happen as a result of certain changes. For example, if the supply of crude oil decreases, microeconomics suggests that the price of gasoline may increase. At a certain level, it may even suggest that buyers will buy less gasoline. Microeconomics has two main schools or streams of thought: - ANSWER One school is the general equilibrium theory (introduced by Leon Walras in 1874)