Podcast
Questions and Answers
What distinguishes microeconomics from macroeconomics?
What distinguishes microeconomics from macroeconomics?
- Microeconomics examines individual businesses, whereas macroeconomics studies the overall economy. (correct)
- Microeconomics is concerned with historical economic data, while macroeconomics focuses on future predictions.
- Microeconomics analyzes global trends while macroeconomics focuses on specific markets.
- Microeconomics deals exclusively with price setting in monopolies, while macroeconomics does not.
Which economist popularized microeconomics in the 20th century?
Which economist popularized microeconomics in the 20th century?
- John Stuart Mill
- Ragnar Frisch
- Alfred Marshall (correct)
- David Ricardo
Which of the following areas is NOT a key focus of microeconomics?
Which of the following areas is NOT a key focus of microeconomics?
- International Trade Policies (correct)
- Price Determination
- Market Structures
- Factor Pricing
What was the significance of Ragnar Frisch's work in economics?
What was the significance of Ragnar Frisch's work in economics?
Which definition aligns with the term 'macro' in economics?
Which definition aligns with the term 'macro' in economics?
Flashcards
Microeconomics
Microeconomics
The study of individual businesses and markets; focusing on smaller economic units like consumers, firms, and industries.
Macroeconomics
Macroeconomics
The study of the overall economy, analyzing factors like national income, unemployment, and inflation.
Price Determination
Price Determination
The process of determining the price of a good or service in a market, considering factors like supply and demand.
Factor Pricing
Factor Pricing
Signup and view all the flashcards
Alfred Marshall
Alfred Marshall
Signup and view all the flashcards
Study Notes
Introduction to Micro and Macro Economics
- Microeconomics examines individual economic agents like consumers and producers.
- Macroeconomics studies the overall economy, including aggregate variables like inflation and unemployment.
- Early economists like Ragnar Frisch distinguished between micro and macro.
- Micro comes from the Greek word "mikros" meaning small, while macro comes from "makros" meaning large.
- Microeconomics initially focused on individual firms and markets.
- Classical economists contributed to the principles of microeconomics.
- Ragnar Frisch's work in the 1930s formalized the distinctions.
- Keynes's work in the 1930s provided a framework for macroeconomics.
- Microeconomic analysis involves investigating individual markets, goods, and services.
- Macroeconomics investigates the functioning of the overall economy.
Scope of Microeconomics
- Microeconomics covers topics such as:
- Product pricing
- Factor pricing
- Market structures
- Demand and supply analysis
- Consumer behavior
- Firm behavior
- It examines factors like production costs, pricing decisions etc.
- It addresses subjects like market imperfections.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
