ECON 304 Lecture Notes - Lecture 1: Opportunity Cost
15 May 2020
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Document Summary
The two main branches of economics are microeconomics and macroeconomics. Microeconomics studies the economy at the small-scale level, examining individuals and specific markets. Macroeconomics studies the economy at the large-scale level, examining total output, the price level, and other aggregate measures of the economy. Both branches deal with issues of trade and government intervention, but they do so at different levels. Microeconomics deals with how imports and exports affect one existing market, while macroeconomics looks at total imports and exports for the entire country. Similarly, microeconomics deals with how government regulation can impact prices and output in one specific market, while macroeconomics deals with large-scale policy issues, like a change in defense spending or an increase in income taxes. Organizes and manages land, capital, labor and starts up businesses. Human efforts done mentally or physically with the aim of earning income is known as labor.
