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15 Cards in this Set
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- Back
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The study of the behavior individual firms in the household, and how their decisions affect the market |
Microeconomics |
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Deals with the behavior of the economy as a whole. Examines the forces that affect many consumers firms and workers at the same time |
Macroeconomics |
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Considers how the price of a certain product can change with the changing forces of supply and demand |
Micro |
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The prices of all goods are considered as are production of all goods and services |
Macro |
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Macro economics - as a new field in economics was born US and other economics were severely weekend - stock market crashed Supply of labor , capital and technology had a drastic change National income Collapsed |
1930’s (Great Depression) |
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Major policy objectives of macroeconomics |
1. Achieve high-level, and rapid growth of output. 2. Seak high level of employment. 3. Achieve priced stability. |
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4 sectors of the economy |
Households Firms Government Foreign sector |
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Deals with import-export activities |
Foreign sector |
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Use the factors of production, pay for the use of factors of production, example salary, and determine what to produce, and in what quantity |
Firms |
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Regulates the economy, collects taxes, issues, economic policies |
Government |
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Provide the factors of production, example, labor accept the payment for providing the factors of production and decide how much product or services to buy |
Households |
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Three types of markets |
1. Market for goods and services. (products market) 2. Market for the factors of production. (land, labor, capital and entrepreneurship) 3. Financial market.-banks and other financial institution. (BPI, BDO, Metro Bank etc..) |
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Show the relationship between income and expenditures Describe the transactions among the different sectors of the economy, namely, household firms, government, and Foreign sector |
circular flow diagrams |
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4 sectors are connected by 3 Types of Markets namely? |
Market for goods and services Market for the factor of production Financial market |
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FOUR CIRCULAR FLOW MODEL |
Four Sectors; HOUSEHOLD, FIRMS, GOVERNMENT AND FOREIGN SECTOR THREE TYPES OF MARKETS: Market for GOODS AND SERVICES, MARKET FOR FACTORS OF PRODUCTION AND FINANCIAL MARKET |
