Economic Principles Name: Course: Date: Economists as scientists and policy makers MARKETING SALES AND SERVICE PLANS 10 Running head: MARKETING SALES AND SERVICE PLAN1 Marketing Sales And Service Plan Name Institution Affiliations Date Economics can serve some purposes one of them being in policy formulation. Economists apart from being policy formulators are also scientists (Frey 1999). This paper seeks to show how economists are both scientists and policy makers. Economists are scientists since they come up with hypotheses and models that are put to the test by the use of data. The models are sources of predictions which are at times off the mark. Data gives economists a room to describe the activities of people. A good example is a measure of gasoline consumption once a gasoline tax is imposed. Economists also come up with solutions of what should be done following their findings. They therefore answer the question measure of the cost of living. This is because of its failure to factor changes in goods’ quality on the onset of purchases. A good example is a product that gives a consumer a net benefit through the purchase of the product which has improved in its quality and the functions it serves. The price index has no ability to factor in such changes in its measures (Baumol & Blinder 2015). Consumer price index is also not a very reliable tool in measuring the cost of living since it bases its findings only on the urban areas. The rural areas are mostly not considered therefore making the index a poor estimation tool. References Baumol W. J. & Blinder A. S. (2015). Microeconomics: Principles and policy. Cengage Learning. Frey B. S. (1999). Economics as a science of human behavior: Towards a new social science paradigm. Springer Science & Business Media. [...]
Purpose of Assignment The purpose of this is assignment is for students to review the basic principles of economics and the concepts of the circular flow model, showing the connectivity of society's economic players and the flow of goods and money within an economy. Students will learn how society allocates its scarce resources and how economists are both scientists and policymakers. Students will define GDP and CPI and how they are calculated. Assignment Steps Resources: National Bureau of Economic Research; Principles of Macroeconomics: Ch. 1, 2, 3, 4, 5, 6, and 7 Scenario: Your organization's CEO is concerned that members of the strategic planning committee are not familiar with current economic thought and principles. The CEO has assigned you the task of developing a report to introduce some of these thoughts and principles. Develop a 1,050-word report to the members of the strategic planning committee explaining the following information: How economists are both scientists and policymakers and what principles society uses to allocate its scarce resources. Using the circular flow model, explain the flow of money and goods in an economy. How the economy coordinates society's independent economic actors. A country's gross domestic product (GDP) and how it is defined and calculated. How the consumer price index (CPI) is constructed and why it is an imperfect measurement of the cost of living. Format the assignment consistent with APA guidelines.