economics Flashcards
1
Q
what is microeconomics
A
it is branch of economics that studies the specific choices made by consumers and producers
2
Q
what are some questions of microeconomics
A
- What are the choices individuals and companies make?
- How companies and individuals interact with each other?
- What is the role of information?
- Questions about behavioural economics
3
Q
what are 2 tools in microeconomics
A
theories and models
4
Q
what are theories and models
A
explanations of how things work that help us understand and predict how and why economic entities behave as they do
5
Q
what are 5 central assumptions of microeconomics
A
- People are selfish
- People are fully rational
- Money is central
- Economics is about cost-benefit analysis
- Economics is about efficiency
6
Q
who are two key players of microeconomics
A
Consumers (buyers) and Producers (firms)
7
Q
what does microeconomics explore
A
it explores factors that influence how consumers choose which goods to consume and how this consumption affects the cost of production
8
Q
A
