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    Division of Economics

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    Joey, CPA
    The document discusses microeconomics and macroeconomics. Microeconomics examines the behavior of individuals, households, and firms in markets. It focuses on supply and demand factors that influence price. Macroeconomics analyzes whole economies and aggregate indicators like GDP, unemployment, and inflation. It also examines how government policies and business cycles impact markets. Both seek to understand how economic decisions are made and how those decisions allocate scarce resources.

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    Division of Economics

    Uploaded by

    Joey, CPA
    312 views12 pages
    The document discusses microeconomics and macroeconomics. Microeconomics examines the behavior of individuals, households, and firms in markets. It focuses on supply and demand factors that influence price. Macroeconomics analyzes whole economies and aggregate indicators like GDP, unemployment, and inflation. It also examines how government policies and business cycles impact markets. Both seek to understand how economic decisions are made and how those decisions allocate scarce resources.

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    The document discusses microeconomics and macroeconomics. Microeconomics examines the behavior of individuals, households, and firms in markets. It focuses on supply and demand factors that influence price. Macroeconomics analyzes whole economies and aggregate indicators like GDP, unemployment, and inflation. It also examines how government policies and business cycles impact markets. Both seek to understand how economic decisions are made and how those decisions allocate scarce resources.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    312 views12 pages

    Division of Economics

    Uploaded by

    Joey, CPA
    The document discusses microeconomics and macroeconomics. Microeconomics examines the behavior of individuals, households, and firms in markets. It focuses on supply and demand factors that influence price. Macroeconomics analyzes whole economies and aggregate indicators like GDP, unemployment, and inflation. It also examines how government policies and business cycles impact markets. Both seek to understand how economic decisions are made and how those decisions allocate scarce resources.

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    Division of Economics

    • Microeconomics
    • Macroeconomics
    Microeconomics
     is the study of individuals, households and
    firms' behavior in decision making and
    allocation of resources. It generally applies to
    markets of goods and services and deals with
    individual and economic issues.
    Additional Information:
    Microeconomic study deals with what choices people make, what factors
    influence their choices and how their decisions affect the goods markets
    by affecting the price, the supply and demand.

    https://economictimes.indiatimes.com/definition/microeconomics
    Microeconomics
    Examples:
     Demand
     Supply
     Elasticity
     Opportunity Cost
     Labor Economics
     Competition
     Competitive Advantage
     Consumer Choice
     Business Confidence
     Information Economics
     Welfare Economics
     Productivity
    Microeconomics
    Macroeconomics
     Macroeconomics is the branch of economics
    that studies the behavior and performance of
    an economy as a whole. It focuses on the
    aggregate changes in the economy such as
    unemployment, growth rate, gross domestic
    product and inflation.
    Additional Information:
    Macroeconomics analyzes all aggregate indicators and the microeconomic factors
    that influence the economy. Government and corporations use macroeconomic
    models to help in formulating of economic policies and strategies.

    https://economictimes.indiatimes.com/definition/macroeconomics
    Macroeconomics
    Examples:
     Market
     Market Failure
     Competition
     Business Cycles
     Growth
     Price Stability
     Monetary Policy
     Employment
     Goods
     Productivity
     Efficiency
    Macroeconomics
    History of Economics
     Economics is the science that concerns itself with
    economies, from how societies produce goods and
    services to how they consume them. It has influenced
    world finance at many important junctions throughout
    history and is a vital part of our everyday lives. The
    assumptions that guide the study of economics, have
    changed dramatically throughout history, however.
     Adam Smith – Father of Economics
     Oikomos – Greek word

    http://uscentrist.org/platform/docs/history-of-economics
    Three Basic Economics Problem:
    What Goods and Services to Produce and How much?

     What does a society do when the resources are limited?


     It decides which goods/service it wants to produce.
     It also determines the quantity required. 

     Definition:
    This problem involves selection of goods and services to beproduced and the
    quantity to be produced of each selected commodity. Every economy has limited
    resources and thus, cannot produce all the goods. More of one good or service
    usually means less of others.

    http://www.yourarticlelibrary.com/problems/3-central-problems-that-
    are-faced-by-every-economy-of-a-country/8812
    How to Produce Goods and Services?
     Definition:
    This problem refers to selection of technique to be used for production
    of goods and services. A good can be produced using different
    techniques of production. By ‘technique’, we mean which particular
    combination of inputs to be used. Generally, techniques are classified
    as: Labour intensive techniques (LIT) and Capital intensive techniques
    (CIT).

    Example:

    http://www.yourarticlelibrary.com/problems/3-central-problems-that-
    are-faced-by-every-economy-of-a-country/8812
    For whom to Produce Goods and Services?
     This problem refers to selection of the category of people who will
    ultimately consume the goods.
     Definition:
    It has to decide on who gets what share of the total output of goods and
    services produced. In other words, society decides on the distribution of
    the goods and services among the members of society.

    http://www.yourarticlelibrary.com/problems/3-central-problems-that-
    are-faced-by-every-economy-of-a-country/8812

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