Economics, 3rd Edition

Economists tend to think in terms of general rather than partial equilibrium.

t
 Economies are made up of millions of interrelated markets. Non-economists, 

argues Budd, tend to see things from a partial equilibrium point of view. In many 

cases, this view is based around a zero-sum outcome – the benefit received by one 

party to an economic decision is offset by a negative impact on someone else. Look-

ing at the big picture gives a more accurate understanding of how economies work 

and what the consequences of economic policy can be.