MGEA02H3 Chapter Notes - Chapter 1: Market Basket, Producer Price Index, Market Price
7 Oct 2013
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MGEA02H3 Full Course Notes
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Economics is divided into 2 main parts: Microeconomics: branch of economics that deals w/ the behaviour of individual economic units consumers, firms, workers, and investors as well as markets that these units comprise. Macroeconomics: branch of economics that deals w/ aggregate economic variables, such as the level & growth rate of national output, interest rates, unemployment, and inflation. Microeconomics is about the allocation of scarce resources. In countries w/ planned economies, micro is of lil relevance cuz ppl r told wht to make, how much n where to live & work. In modern market economies, consumers, workers, n firms have much more flexibility. & choice wen it comes to allocating scare resources. They have limited income, can b spent r saved. How consumers, based on their preferences, maximize their well-being by trading off the purchase of more of some goods for the purchase of less of others. Trading current consumption for future consumption, by saving.
