ECON 3440 Lecture Notes - Lecture 3: Marginal Product, Ex-Ante, Productive Efficiency
Document Summary
Topic one the policy and practise of. Macroeconomics: the study of the structure and performance of national economies and of the policies that gov. use to try to affect economic performance. Microeconomics: looks at the behaviour of individual firms, households or markets. Economic theory a set of ideas about the economy that has been organized in a logical framework. Economic model a simplified description of some aspect of the economy, usually expressed in mathematical or graphical form. Macroeconomics involves general equilibrium analysis w/ 4 economic agents: consumers/households, businesses/producers, gov, foreigners. Econ 3440 midterm i. e. gov lower taxes for households that put $ into saving vehicles, or gov can make consumption more expensive by increasing sales tax, or tax breaks given to business that contribute to employee pensions. Government spending includes both government purchases of goods and services(g), such as purchases of military equipment and the salaries of government officials, and government benefits (government transfer payments) paid to individuals, such as.
