Short Essay After reading Chapter 2, I was able to understand economics and how it affects business. This brings me back to the “good old days” when I was on the policy debate team in high school. On this team, our goal was to act as if we were policy makers and to establish policies in regards to the resolution decided that year. Debaters argued the status quo, implications, and solutions in relations to the year’s resolution. Much of the discussion revolved around the economy and deciding whether or not it was necessary to create new policies because of the possibility that the new government spending can lead to inflation, which would lead to stagnation and a possible recession. We would have to do tons of research and cite authors, newspapers, and facts from history to prove whether or not a new policy would be ideal. Depending on how well each team argues the pros and cons, the panel of judges would decide the winner.
Although I thought debate taught me all I needed to know about economics, I realized that I only learned the basics of macroeconomics. In Chapter 2 I gained some insight on microeconomics. Microeconomics is the part of economics that focuses on the behavior of people and organizations in particular markets. This is a portion that I didn’t study when on the debate team. As we pretended to be policy makers, I was taught that the importance is always the global scenarios. When looking into the microeconomics, I was able to thoroughly understand how different types of economies such as capitalism, socialism, communism, and mixed economies can play major roles in the success and the failures.
Furthermore, in class today, we discussed the difference between two corporations: Coca Cola and Pepsi. We reviewed historical proof of competition where taste, price and quantity were in a race to determine preference in the market. Professor Hyland went