MGEB02H3 Chapter : Week 1 chapter notes
5 Dec 2010
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N microeconomics branch of economics that deals with the behaviour of individual economic units consumers, firms, workers, N macroeconomics branch of economics that deals with aggregate economic variables, such as the level and growth rate of. N national output, interest rates, unemployment, and inflation. N macroeconomists have become increasingly concerned with the microeconomic foundations of aggregate economic phenomena, and much of microeconomics is actually an extension of microeconomic analysis. N more precisely, it is about the allocation of scarce resources. N in modern market economies, consumers, workers, and firms have much more flexibility and choice when it comes to allocating scarce resources; unlike in planned economies such as that of cuba, north korea, or the former soviet union. N microeconomics describes the trade-offs that consumers, workers, and firms face, and shows how these are best made. N consumers have limited incomes, which can be spent on a wide variety of goods and services, or saved for the future.
