Macro-Chapter 1

Macro-Chapter 1 - Scott Eastman T-H 9:30 Chapter 1 A....

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Scott Eastman T-H 9:30 Chapter 1 A. Economics: Social Science focusing on human behavior involving trade and exchange a. Microeconomics: The study of how trade and exchange take place in individual, separate and particular markets b. Macroeconomics: The study of the overall, national (or state), and aggregate consequences of trade and exchange. i. Input Out Put Analysis: when physical dimensions are measured and compared ii. Benefit Cost Analysis: when economic values are measured and compared iii. Real Measures: A physical quantitative measure iv. Nominal Measure: A financial or dollar amount measure B. Circular Flow Diagram: a simple description or a model of an economy. It shows how inputs are turned into outputs and shows some of the consequences of that process a. Input Market: Where resources flow from households to firms i. Inputs: are resources that are necessary to produce food, clothing, shelter and other outputs that satisfy wants and needs ii. Resources: are inputs that are produced in order to satisfy wants and needs
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 2

Macro-Chapter 1 - Scott Eastman T-H 9:30 Chapter 1 A....

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online