Thesis Statement: Microeconomic mechanisms can predict future technology impacted economic outcomes. A. What do economics tell us? The science of economics1. defining microeconomics 2. some terms and definitionsII. Using Microeconomic modelsA. Theory 1. practical application2. household choicesIII. Economic GrowthA. The cost of economic growthB. Capital accumulationC. Technological changeIV. Individual and Market Demand A. Household Consumption Choices1. Constraints2. Preferences3. Marginal utilitya.an analogy4. Utility maximizationV.Predictions Based on Marginal Utility TheoryA.Price increases B.Increases of incomeVI. In ConclusionThis paper will attempt to examine microeconomic structures in relation to technological advances. The impact of increasingly available technology is a major economic force. Prior to 1975, for example, viewing a first run movie at home was technically possible but economically infeasible. Only the wealthy chose to view moves at home. VCRs became available in 1976, with a typical price tag of $2000.00 Even at such a high price, that invention slashed the price of home viewing. Today a VCR can be purchased for $200.00, a fraction of its initial cost. Videos can be rented for approximately a dollar or purchased for around $20.00. Home viewing has become common in a few short years, where formerly it had been available only to the very rich. In what other ways has technology changed the way of life and can microeconomic mechanisms accurately predict future economic outcomes?What is Economics?The simple answer to the question, What is the economy? is to state that the economy is the means by which resources are allocated. A more accurate portrayal of economic process is to view it as a machine that produces three distinctly different results: First, the economy determines what goods and services will be produced and in what quantities. Secondly, it indicates how various goo...
