Podcast
Questions and Answers
Which term is derived from the Greek word 'Mikros'?
Which term is derived from the Greek word 'Mikros'?
- Econometrics
- Microeconomics (correct)
- Econometrics
- Macroeconomics
Which economist is credited with popularizing microeconomics?
Which economist is credited with popularizing microeconomics?
- David Ricardo
- Ragnar Frisch
- Alfred Marshall (correct)
- Adam Smith
What is a key focus of macroeconomics?
What is a key focus of macroeconomics?
- Overall economic performance (correct)
- Pricing of specific products
- Individual business strategies
- Factor pricing
Which of these is a primary area of study in microeconomics?
Which of these is a primary area of study in microeconomics?
In what year was the term 'microeconomics' initially used, according to the text?
In what year was the term 'microeconomics' initially used, according to the text?
Flashcards
Microeconomics
Microeconomics
The study of individual businesses, consumers, and markets. It analyzes how prices are set and how resources are allocated within a market.
Macroeconomics
Macroeconomics
The study of the entire economy, including national income, unemployment, and inflation. It examines how these factors interact and affect the overall economic performance of a country.
Price Determination
Price Determination
A theory that explains how prices are determined in a market, considering factors like supply, demand, and competition.
Factor Pricing
Factor Pricing
Signup and view all the flashcards
Keynes' Book on Economics
Keynes' Book on Economics
Signup and view all the flashcards
Study Notes
Introduction to Micro and Macro Economics
- Microeconomics studies individual agents (like firms and consumers) and their interactions in specific markets.
- Macroeconomics observes the economy as a whole, analyzing broader trends like inflation, unemployment, and economic growth.
- Microeconomics, meaning "small," examines individual components of the economy, such as goods and services, industries, and specific markets.
- Macroeconomics, meaning "large," analyzes the aggregate behavior of the economy, including factors like GDP, inflation, and employment.
- Ragnar Frisch, a Norwegian economist, distinguished microeconomics and macroeconomics in 1933.
Historical Development of Microeconomics
- Microeconomic analysis emerged before macroeconomics.
- Early economists (like Adam Smith, David Ricardo, and J.S. Mill) laid the groundwork.
- Alfred Marshall popularized microeconomics with his "Principles of Economics" in 1890.
- Other prominent economists (like Pigou, Hicks, and Samuelson) contributed to its development.
Historical Development of Macroeconomics
- Macroeconomics developed later, after observing the impacts on the whole economy.
- Early macroeconomic analysis occurred during the 16th and 17th centuries.
- Mercantilist and Physiocrats theories (1700s and 1800s) looked at national income and wealth.
- The Great Depression (1930s) spurred a greater need for macro theory.
- John Maynard Keynes's work in the 1930s was pivotal in developing modern macroeconomics.
Scope of Microeconomics
- Microeconomics examines factors like:
- Prices and quantities of goods and services
- Production costs
- Consumer behavior and choices
- Market structures (e.g., perfect competition, monopolies)
- Microeconomics explores how these factors interact to influence market outcomes.
- A table depicting aspects of microeconomics is given within the text.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
