Ten Principles of Economics and the Data of Macroeconomics

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Resources: National Bureau of Economic Research; Principles of
: 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.

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