BMGT 100 Lecture Notes - Lecture 4: Economic System, Regional Policy Of The European Union, Economic Equilibrium
Document Summary
Learning objective 1: define economics and describe the different types of economic systems. Economics is the study of how individuals, businesses, and government make decisions about how to allocate limited (scarce) resources to best satisfy people"s wants, needs, and desires. Scarcity refers to the economic problem of how to reconcile unlimited human wants and desires with limited economic resources. Microeconomics - the study of how individual businesses, households, and consumers make decisions to allocate their limited resources in the exchange of goods and services. Macroeconomics - the study of the behaviour of the overall economy (broad aggregates). Economic system the system through which a country allocates its resources (factors of production). Define economics and describe the different types of economic systems. As you see here, the various economic systems are presented on a continuum instead of as distinct categories because individual economies (that is, countries) usually include characteristics of each system.
