Chapter 01 Terms 101 - Economics The study of how people allocate their limited resources to satisfy their unlimited wants The ultimate purpose of

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

View Full Document Right Arrow Icon
Economics: The study of how people allocate their limited resources to satisfy their unlimited wants. The ultimate purpose of economics is to explain choices. Macroeconomics: The part of economic analysis that studies the behavior of companies as a whole. It deals with the economy wide phenomena such as changes in unemployment, the general price level, and national income. Microeconomics: The part of economic analysis that studies individual decision making undertaken by individuals (or households) and by firms. Market System : All the products and resource markets of a market economy and the relationships among them; a method that allows the prices determined in those markets to allocate the economy’s scarce resources and to communicate and coordinate the decisions made by consumers, firms, and resource suppliers. Command System : A method of organizing an economy in which property resources are publicly owned and government uses central economic planning to direct and coordinate economic activities; command economy. The Labor System:
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 06/06/2011 for the course ECON 101 taught by Professor Dsliva during the Fall '11 term at Moraine Valley Community College.

Page1 / 3

Chapter 01 Terms 101 - Economics The study of how people allocate their limited resources to satisfy their unlimited wants The ultimate purpose of

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