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.