Economics is the study of how people use scarce resources to satisfy their unlimited wants. Micro economics: is the study of outcomes of decisions by people and firms through a focus on the supply and demand of goods, the cost of production, and market structures. The sudy of individual behaviour in the economy.
looks at consumers and producers behaviours(their choices), price and quantity, individual markets, detrmination of prices and allocation of scarce resources.
It is also called price theory
Macro economics:The study of how major components of an economy interact; it includes the topics of unemployment, inflation, interest rate policy and the spending and taxation policies of government.The study of aggregate behaviour in the economy.
It looks at aggregate demand and aggregate supply. looks at goods in a whole economy, inflation, inter relationships between markets, economic growth, inflation and unemployment.
It is also called income and employment theory
The different markets are: product market, factor market, labor market, financial market, and foreign exchange market.
Product market - where goods are sold
Factor market - where resources we need to produce goods and services or factors of production are sold.
Financial market - Market for financial capitals like money , bonds
Foreign exchange market - market for buying and selling of currency
Dr. Stephanie Powers, "Macro Economics", (lecture, Donald School of Business, Red Deer AB, Winter 2012)
Economics is the study of how people use scarce resources to satisfy their unlimited wants.
Micro economics: is the study of outcomes of decisions by people and firms through a focus on the supply and demand of goods, the cost of production, and market structures. The sudy of individual behaviour in the economy.
looks at consumers and producers behaviours(their choices), price and quantity, individual markets, detrmination of prices and allocation of scarce resources.
- It is also called price theory
Macro economics:The study of how major components of an economy interact; it includes the topics of unemployment, inflation, interest rate policy and the spending and taxation policies of government.The study of aggregate behaviour in the economy.It looks at aggregate demand and aggregate supply. looks at goods in a whole economy, inflation, inter relationships between markets, economic growth, inflation and unemployment.
- It is also called income and employment theory
The different markets are: product market, factor market, labor market, financial market, and foreign exchange market.Product market - where goods are sold
Factor market - where resources we need to produce goods and services or factors of production are sold.
Financial market - Market for financial capitals like money , bonds
Foreign exchange market - market for buying and selling of currency
Dr. Stephanie Powers, "Macro Economics", (lecture, Donald School of Business, Red Deer AB, Winter 2012)