Micro vs Macro economics(Econ)

Traditional economy

things are done the way they've always been done. ⤳ social custom.

Mixed economy

three basic econ questions are answered using a combo of the traditional market.

The three basic questions 1.) What will be produced with limited resources. 2.) How will goods and services be produced. 3.) For whom will the goods and services be produced.

1.) essentials are considered. U.S - supply & demanded answers this question. ⤳ 2.) availability of resources must be considered when looking at methods. labor intensive vs capital (machine). ⤳ 3.) U.S - answered by the consumer and a price system (who has money).

Command economics

all economics fall here. ⤳ economics are labeled according to which they have the most characteristics of.

Market economy

also known as a controlled economy. ⤳ government decides the answers to the three basic econ questions. ⤳ decisions are made based on what is right for society (the majority).

Macroeconomics

looks at the behavior of the whole economy (the big picture).

Microeconomics

looks at the individual choices concerning a product a firm, or an industry.