Microeconomics

What is the difference between microeconomics and​ macroeconomics?

Microeconomics is the study of decision making undertaken by individuals while macroeconomics looks at the behavior of the economy as a whole.

Microeconomics is the part of economic analysis that studies decision making undertaken by​ ________. Macroeconomics is the part of economic analysis that studies the behavior of​ ________.

individuals and​ firms; the economy as a whole

What is the relationship between wants and​ resources?

Resources are used to produce things that satisfy​ people's wants

The ultimate purpose of economics is

To study how individuals make choices.

Microeconomics focuses on

decisions made by individual households and firms.

Economics is the study of how people allocate their​ ________ resources in an attempt to satisfy their​ ________ wants. As​ such, economics is the study of how people make choices.

limited; unlimited

The impact of the national debt on the​ economy's unemployment is an example of

macroeconomics analysis.

Economics is a social science that involves the study of how individuals choose among alternatives to satisfy their necessities wants ​, which are what people would buy if their incomes were limited unlimited .

wants Unlimited

One reason that economists use microeconomics as the basis of macroeconomic analysis is

that all choices are made by individuals and firms.