RSM100Y1 Chapter Notes - Chapter 3: Monopolistic Competition, Business Cycle, Economic System
Document Summary
Economic systems focus on the exchanges that companies as societies make as a whole, showing how they divide their resources amongst its citizens. Economic studies the choices people and governments make when dividing up their scarce resources. o. It"s involved in producing, distributing, and consuming foods and services. Microeconomics is the study of small economic units (ie. individual consumers, businesses) Macroeconomics is the study of a country"s overall economic issues; how an economy uses its resources and how government policies affect standards of living. Choices about where to spend money help to set both the prices of goods and services and the amounts sold. Consumers" decisions are usually based on the prices and the supply of the gods and services they need. The exchange process involves both demand and supply. Demand is the willingness and ability of buyers to purchase goods and services at different prices.
