Unit 2 Defiitions Flashcards
1
Q
Microeconomics
A
The study of particular and sections of the economy, rather than the economy as a whole
2
Q
Macroeconomic
A
The study of economic behaviour and decision making in the whole economy, rather than individual markets
3
Q
Market System
A
The method of allocating scarce resources through the market forces of demand and supply
4
Q
Market Equilibrium
A
When demand for a product matches the supply
5
Q
Market Disequilibrium
A
When the price of an item is too high or too low, resulting in a surplus or shortage
6
Q
Price Mechanism
A
The system of relying on the market forces of demand and supply to allocate resources
