Lecture_Microeconomics

Lecture_Microeconomics - WHY STUDY ECONOMICS? TO UNDERSTAND...

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WHY STUDY ECONOMICS? Industrial Revolution The period in England during the late eighteenth and early nineteenth centuries in which new manufacturing technologies and improved transportation gave rise to the modern factory system and a massive movement of the population from the countryside to the cities. TO UNDERSTAND SOCIETY The study of economics is an essential part of the study of society.
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WHY STUDY ECONOMICS? TO UNDERSTAND GLOBAL AFFAIRS An understanding of economics is essential to an understanding of global affairs. The events of September 11, 2001, dealt a blow to the tourism industry and left airlines in deep financial trouble.
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WHY STUDY ECONOMICS? TO BE AN INFORMED VOTER When we participate in the political process, we are voting on issues that require a basic understanding of economics. A knowledge of economics is essential to be an informed voter.
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microeconomics The branch of economics that examines the functioning of individual industries and the behavior of individual decision-making units—that is, business firms and households. THE SCOPE OF ECONOMICS MICROECONOMICS AND MACROECONOMICS macroeconomics The branch of economics that examines the economic behavior of aggregates—income, employment, output, and so on—on a national scale. Microeconomics looks at the individual unit—the household, the firm, the industry. It sees and examines the “trees.” Macroeconomics looks at the whole, the aggregate. It sees and analyzes the “forest.”
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THE METHOD OF ECONOMICS positive economics An approach to economics that seeks to understand behavior and the operation of systems without making judgments. It describes
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This note was uploaded on 03/30/2008 for the course ECON 2005 taught by Professor Zirkle during the Spring '07 term at Virginia Tech.

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Lecture_Microeconomics - WHY STUDY ECONOMICS? TO UNDERSTAND...

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