Description The study of economics centers on the concept of scarce resources and unlimited wants and desires. As a result, people make decisions and these decisions are the foundation of the theories which make up microeconomics. The production possibilities model has been used to describe a variety of activities for competing uses of scarce resources. Instructions: Using additional outside research and materials from your text, prepare a 750-word (minimum) essay in which you: Describe the circular-flow model of economic activity and include examples of: how you as a consumer fit in the model how a business with which you are familiar fits within this model. Describe the difference between macroeconomics and microeconomics. Give examples of topics which fit each one and explain why the fit. Research 3 current applications for the production possibilities theory used by businesses, politicians or local community leaders. Describe what the outcome (intended and untended consequences) was or might be if the outcome is unknown.
