One of the most critical concepts in economics is the concept of opportunity costs. It is the most fundamental issue of economics as a social science and explains the decision-making and behavior of economic subjects (or agents). Economic agents are private households, firms, and the government as a public household. While explaining the economic concept of opportunity costs, focus on why people choose to do, consume, or even spend time and resources on what they do. How do you make your choices and decisions? 1. Introduction: Definition of Opportunity Costs How can we define opportunity costs? Opportunity costs are costs […]

Understanding Macroeconomic Policy Objectives: Magic Square and Hexagon Explained

By James E Njoroge, M. Sc. (VWL) - Economic Coach, Consultant and Lecturer / February 21, 2020 / Economic Blog, Behavioral Economics, Foundations of Economics, Macroeconomics

Understanding Macroeconomic Policy Objectives: Magic Square and Hexagon Explained Read Post »

Six macroeconomic policy objectives exist in an economy that are systematically pursued. These six objectives are symbolized by the magic square and the magic hexagon frameworks, which encapsulate the national economy’s four quantitative and two qualitative goals. The overarching intention of these economic policy measures is to optimize the overall societal and economic welfare of the economy. This framework categorizes and prioritizes the diverse economic policy goals and measures essential for achieving a balanced and prosperous economy. Much of macroeconomic analysis focuses on the four quantitative goals, but the analysis of qualitative macroeconomic objectives has gained momentum as climate change

Basics of Economics, economic lectures, Economic order, Economic welfare, English, magic hexagon, Magic square, Qualitative macroeconomic policy objectives, Quantitative macroeconomic policy objectives, Social welfare

Basics of Economics

Opportunity Costs

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Understanding Macroeconomic Policy Objectives: Magic Square and Hexagon Explained

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