Chapter 3 Notes - Chapter 3 Learning Goals a Distinguish...

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Chapter 3 Learning Goals a. Distinguish between microeconomics and macroeconomics b. Explain the factors that drive supply and demand c. Describe the four types of market structures in a private enterprise system. d. Compare the three major types of economic systems. e. Identify and describe the four stages of the business cycle f. Explain the factors that affect the stability of the nation's economy Microeconomics - The study of small economic units, such as individual customers, families, and businesses. Economics - Analysis of the choices people and governments make in allocating resources. - Supply: Amount of goods and services for sale at different prices ex. Low supply of gas= higher prices - Demand: Willingness and ability of consumers to purchase goods and services at different prices. Supply Curve- shows the relationship between different prices and the quantities that sellers will offer for sale, regardless of demand. Demand Curve- shows the amount of a product buyers will purchase at different prices - Driven by variety of factors like competition, price, larger economic events, and consumer preferences - Economics balance of what we want and what we can afford How Supply and Demand Interact a. Supply and demand curves meet at the equilibrium price b. Buyers and sellers make choices that restore the equilibrium price Macroeconomics : Issues for the entire society - Political, social, and legal environments differ in every country.
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This note was uploaded on 02/01/2012 for the course ADMINISTRA 100 taught by Professor Reeves during the Fall '11 term at Rutgers.

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Chapter 3 Notes - Chapter 3 Learning Goals a Distinguish...

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