Countries and economic

Poor countries are somehow different than wealthy countries because poor countries have small income into their countries as it is compared with rich countries. Poor countries do not perform better in Global Peace Index as it is compared with wealthy countries which make poor countries be somehow different (Schweitzer, 2007). Firms and the market can increase the wealth of poor countries for instance firms can minimize investments which will allow firms to make profit hence increase the level of product which tend to bring profit in the poor countries. The market can improve the wealth of poor countries by exporting goods from poor countries to other countries which will increase the level of income in the poor countries, therefore, making poor countries rich (Freund, 2016).

Goals and decisions are required in trading so as to know what one have to give up on in order to get the thing is reasonable which is implied by people tradeoffs the first principle of economic. Get it is the second principle which helps an economist to understand the best option to make over the option selected. The marginal benefit of the marginal cost help to exceeds the action in a rational decision which is implied by the third principle that is rational people think at the margin. People respond to incentives is the fourth principle that helps an economist to understand the benefits and the cost changes behavior. These are the first four principles that help an economist to make a decision. Trade can make work better off is the fifth principle that helps an economist to understand how to communicates with clients using his or her variety in order to increase the profit in the market. Interaction in the market allows an economist to understand how to allocate the recourses effectively which is the sixth principle of the market are usually a good way to organize economic activity. The government can help economist to create more income in the country by minimizing monopolies when the market fails to allocate resources effectively which is implied by the seventh principle of government can sometimes improve market outcomes. These are the three principles that help an economist to know how the economy works as a whole (Mankiw, 2014).

 A country’s standard of living depends on goods produced and services are the eighth principle that explains how large product or low products increase and decreases the income in the countries. When the government increases the value of money it makes the prices of quantities raise which is implied by the ninth principle of economic that is prices rise when the government prints much money. Government spending, taxes, and monetary increase the short-run effects which later increase the level of unemployment due to the reduction of inflation which is implied by the tenth principle of the tradeoff between inflation and employment. These are the last three principles help an economist to know how people interact (Mankiw, 2014).

 

 

 

 

 

 

 

 

 

 

 

 

 

References

Top of Form

Mankiw, N. G. (2012). Principles of macroeconomics. Mason, OH: South-Western Cengage        Learning.

 

Bottom of Form

Freund, C. (2016). Rich People Poor Countries. Washington: Peterson Institute for International Economics.

Schweitzer, S. O. (2007). Pharmaceutical economics and policy. New York [u.a.: Oxford Univ.   Press