Lesson 1 Flashcards
is a branch of economics that studies how individuals, households and firms make decisions to allocate limited resources, typically in markets where goods or services are being bought and sold.
Microeconomics
examines how these decisions and behaviours affect the supply and demand for goods and services, which determines prices; and how prices, in turn, determine the supply and demand of goods and services.
Microeconomics
CHARACTERISTICS OF MICROECONOMICS
Microeconomics looks at the _______ of ________ units.
Microeconomics looks at the decisions of individual units
CHARACTERISTICS OF MICROECONOMICS
focuses on the choices made by individual decision units such as ——-, ——–, and ——-
households, producers, and firms
CHARACTERISTICS OF MICROECONOMICS
are made by these individual entities in a market economy.
Resource allocation decisions
CHARACTERISTICS OF MICROECONOMICS
Microeconomics looks at ——- are determined.
Microeconomics looks at how prices are determined
CHARACTERISTICS OF MICROECONOMICS
various types of market structures such as
- Pure Competition
- Monopoly
- Monopolistic competition
- Oligopoly
Microeconomics is often called?
Price theory
is a marketing situation where many sellers offer similar products for similar prices.
Pure competition
a market structure that consists of a single seller or producer and no close substitutes
monopoly
a market structure where many companies compete to sell similar but differentiated products or services.
Monopolistic Competition
a situation in which a small number of organizations or companies has control of an area of business, so that others have no share?
Oligopoly
CHARACTERISTICS OF MICROECONOMICS
Microeconomics is concerned with ————–.
Microeconomics is concerned with **social welfare. **
This branch (socia welfare) of microeconomics is termed ?
“welfare economics”.
CHARACTERISTICS OF MICROECONOMICS
Microeconomics has a ——
Limited Focus
CHARACTERISTICS OF MICROECONOMICS
Microeconomics develop ———
Microeconomics develop skills
skills
Microeconomics helps you develop your?
Microeconomics helps you develop your logical reasoning
skills
Microeconomics will help you develop skill in the ——- and ——-of models.
Microeconomics will help you develop skill in the construction and use of models.
skills
Microeconomics employs —————– ——– that are useful for making decisions in a variety of ——–
Microeconomics employs** optimizing technique** that are useful for making decisions in a variety of s**ituations. **
skills
The concepts studied in microeconomics are applicable to your personal resource allocation decisions, such as your ——– or ————.
The concepts studied in microeconomics are applicable to your personal resource allocation decisions, such as your career choices or financial investments.
deals with the economic problems by considering consumer’s choices.
market system
The market prices serve as
signals to the producers about what goods to produce and how much of these goods should be produced.
High prices indicate that?
goods are in demand and serve as go signals for production.
The best technique to use is one that results in the?
the least – cost in production.
