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Two Terms, Two Outcomes
DJ Horton
Microeconomics
6/27/17
The economy of the United States is a complex entity. One change, even so
minute, can alter the entire system. At times it can be predicted, at times it cannot;
much like a massive hurricane barreling towards the coast when destruction is
eminent, yet, it may never reach the determined destination. The concept of
microeconomics helps understand how it works and how businesses function in the
midst of the chaos. In a perfect economy, all the factors, positive and negative,
balance each other out and do not require the assistance of outside forces. As you
know in today’s world, nothing is perfect. Therefore, policies and regulations are put
in place to balance out the factors for us.
Looking at a general overview of economics and its terms, one can gain a
broadened knowledge on how some of this begins to fit together. One thing to look
at is competition and the invisible hand. As mentioned, a perfect economy allows the
factors to balance each other out and requires no intervention. When looking at
perfect competition, the markets have the same product and have no real advantage
over the other competitors. The observable hand is the unobservable market force
