BUS 1000 Chapter Notes - Chapter 2: Economic System, Stagflation, Monopolistic Competition

• School: Baruch College
• Department: Business Administration and Policy
• Course: BUS 1000
• Professor: Barry Rosen

Document Summary

Economics study of how society chooses to employ resources to produce goods and services and distribute them for consumption among various competing groups and individuals. Macroeconomics a part of economics that looks at the operation of a nation"s economy as a whole. Microeconomics the part of economics that looks at the behavior of people and organizations in particular markets. Invisible hand a phrase coined by adam smith to describe the process that turns self-directed gain into social and economic benefits for all. Capitalism economic system in which all or most of factors of production and distribution are privately owned and operated for profit. Supply the quantities of products that manufacturers or owners are willing to sell at different prices at a specific time. Demand the quantity of products that people are willing to buy at different prices at a specific time. Market price the price determined by supply and demand.