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Microeconomic questions

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1) What is meant by intended consequences?

2) How does economic analysis trace the effects from a decision?

3) Why is it important to distinguish how groups are impacted from a decision?

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  1. 1) It means that these consequences were planned and probably some actions/efforts were made to achieve it.

    2) It models situation and by changing relevant factors tracks consequences.

    3) To examine net effect on society (aggregate) rather than individual benefit.

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