Ch 3 -2 - Microeconomics Defined Microeconomics: The study...

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Microeconomics Defined Micro economics: The study of choices made by individuals and businesses, the way these choices interact in markets, and the influence of government. Examples of microeconomic questions: Why did many drivers drive fewer miles when gasoline prices spiked in 2009? Why did people buy more SUVs and fewer minivans prior to 2007? Why do some people purchase Lincoln Navigators and others buy a Prius?
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Macroeconomics Defined Macro economics is the study of the performance of the national economy and the global economy. Examples of macroeconomic questions: Why did the unemployment rate in the U.S. grow after 2008? Why did Gross Domestic Product decline in 2009? Why does the United States run a negative balance of trade in global markets? Can the Federal Reserve bring prosperity by cutting interest rates?
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What, How, and For Whom? Goods and Services are the objects that people value and produce to satisfy human wants. Goods
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Ch 3 -2 - Microeconomics Defined Microeconomics: The study...

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