chapter 5 - microeconomics & macroeconomics Flashcards
1
Q
definition of:
microeconomics
A
the economic behaviour of individuals, firms and households
2
Q
definition of:
macroeconomics
A
economic behaviour and decision making of the whole economy rather than a market
3
Q
who are the decision makers affected by microeconomics?
A
- household considering raising a child
- entrepreneur deciding which business to start
4
Q
who are the decision makers affected by macroeconomics
A
- government deciding which products to tax
- roles of multinational companies in determination of exchange rate (more people come they exchange currency for our currency, demand for our money increases
