Your son is graduating from high school and is about to enter the work force. He has developed a strong curiosity about our economic system and how it works. Because you have a good understanding of basic economics, he has asked you to explain several concepts that are essential to an understanding of how the economy works.
Your son has asked you to explain the following concepts and ideas: Absolute and comparative advantage: Explain how these concepts describe the benefits and costs of international trade. “Invisible hand”: What is it and how does it affect the decision-making process in our economic system?
Circular flow diagram: Include the government sector in your explanation, a description of the roles that each participant plays in the economy, and how the different sectors interact in the markets. The Production Possibilities model: Provide an example and include a summary of what the model is illustrating and the economic implications for the economy.
Microeconomics and macroeconomics: Explain the differences between the two and why economics is divided into these two subdivisions. Deliverables: Prepare a 5 page Microsoft Word document that addresses the above-noted concerns and meets APA standards. MUST include APA intext citations MUST MUST MUST Include a summary section in your report that contains 5-7 bullet points identifying your major findings or conclusions of your paper.
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