ECON 103 Study Guide - Midterm Guide: Marginalism, More Fish, Takers
15 Sep 2018
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How economists model decision making by economic agents 7. Microeconomics isn"t about money, the stock market, or personal finance. It also is(cid:374)(cid:859)t about unemployment, inflation, or recessions. These topics fall under the topic of macroeconomics. Macroeconomics deals with large scale phenomena, whereas microeconomics is on a much smaller scale and deals more with personal decision making rather than society wide results. Microeconomics is the study of decision making at the level of the individual person, household, or firm. These decision makers are allied economic agents. Microeconomics deals with the societal outcomes that arise from these decisions. Often, interactions between economics agents occur in the context of markets. Market is a social institution in which people exchange things. Exchange can involve: money for goods, goods for money, goods for goods, exchange of services, abstract exchanges such as an emotional exchange. Markets are a vital part of modern society.
