Chapter 1 - Microeconomics Chapter 1 Preliminaries Stephanie Hon Microeconomics deals with the behavior of individual economic units o units any

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

View Full Document Right Arrow Icon
Microeconomics Stephanie Hon Chapter 1: Preliminaries 9/9/2009 Microeconomics: deals with the behavior of individual economic units o units: any individual or entity that plays a role in the functioning of our economy ( consumers, workers, investors, business firms ) o explains how and why these units make purchasing decisions and how their choices are affected by changing prices and incomes o explains how firms decide how many workers to hire and how workers decide where to work and how much work to do o how economic units interact to form larger units ( markets, industries ) how industries and markets operate and evolve why they differ from one another how they are affected by government policies and global economic conditions Macroeconomics : deals with aggregate economic quantities (level and growth rate of national output, interest rates, unemployment, inflation ) 1.1 The Themes of Microeconomics limits : ways to make the most of these limits; the allocation of scarce resources Trade-offs o Consumers : have limited income which can be spent on goods/services or saved Consumer Theory: describes how consumers, based on their preferences, maximize their
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.

This note was uploaded on 11/20/2010 for the course ECON C.30.0001 taught by Professor Bowmaker during the Fall '09 term at NYU.

Page1 / 3

Chapter 1 - Microeconomics Chapter 1 Preliminaries Stephanie Hon Microeconomics deals with the behavior of individual economic units o units any

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