RSM100Y1 Chapter Notes - Chapter 3: Ontario Energy Board, Monopolistic Competition, Planned Economy
Document Summary
Economics: the social science that studies the choices people and governments make when dividing up their scarce resources. Microeconomics: the study of small economic units, such as individual consumers, families, and businesses. Macroeconomics: the study of a nation"s overall economic issues, such as how an economy maintains an divides up resources and how government"s policies affect its citizens" standards of living. At the heart of every business is an exchange between a buyer and a seller. The exchange process involves both demand and supply. Demand: the willingness and ability of buyers to purchase goods and services: demand curve: a graph of the amount of a product that buyers will purchase at different prices, factors driving demand: Equilibrium price: the current market price for an item (dd=ss) Each nation"s policies and choices help to shape its economic system. Every country has different political, social, and legal conditions, so no two countries have exactly the same economic system.
