AFM131 Chapter Notes - Chapter 2: Macroeconomics, Invisible Hand, Liquid Oxygen

• School: University of Waterloo
• Department: Accounting & Financial Management
• Course: AFM131
• Professor: Bob Sproule

Document Summary

Be aware of the impact of the global environment. Understand the role of the federal and provincial governments in canada. Changes in economic or political systems have major influence on businesses. The study of how society chooses to employ resources to produce goods and services and distribute them for consumption among various competing groups and individuals. Macroeco(cid:374)o(cid:373)ics: the part of the study that looks at the operatio(cid:374) of a (cid:374)atio(cid:374) s economy as whole. Microeconomics: the part of economic study that looks at the behaviour of people and organizations in particular markets. Resource development: the study of how to increase resources and the creation of conditions that will make better use of those resources (e. g. recycling) Business can contribute to an economic system by inventing products that greatly increase available resources. Studies on the effects of population growth on the economy are part of macroeconomics.