Economy:  What is economy |  part3



welcome welcome welcome welcome welcome welcome welcome today we're still continuing after we last left off today we are continuing what is economy part three government officials use economics theory to guide public policy economists abuse theory supported by data and understanding of incentives having the RET incentive is the key if you don't know the meaning of incentive watch part 1 of what is economy we explains it there but the read incentives can be hard to figure out let's take public colleges and universities for example many of them used to get state money for each student they enrolled that meant universities had financial incentives to focus on recruiting as many students as possible but not actually helping them succeed once they were in class so states have started changing the incentives how Morean more states reward schools for the number of students made complete courses or earned degrees the point is if you mess up the incentives policy is not going to work macroeconomists studies the economy as a whole it looks at the whole nation output unemployment interest rates government spending and growth macro econ and where's questions like will unemployment rise if there is an increase in taxes macro economists get more airtime because they predict the direction of the overall economy but less than half of all economizing are macro we can missed there's a whole other side of economics that look at different questions how many workers should we hire to maximize profit that kinds of questions are micro economics questions they're not about predicting GDP I don't know what that means google it or measuring unemployment but they are crucial questions that economists must answer thoughts all this was the last of it we will be back until then good bye and take care and a bientot a world of greatness Galactus II




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