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Economics IGCSEPDF 18
118 pagesrevision 46932
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Economic Agents
Microeconomic Decision Makers
Theseagentsmakechoicesthatimpact their individual welfare, profit, or market outcome.
Decision Maker :Households / Consumers
Typical Microeconomic Decisions:What to buy (consumption),how much to save, where to work
(labour supply).
MICROECONOMICS VS MACROECONOMICS
Microeconomics
individual economic units
prices and quantities
specific markets
Macroeconomics
aggregate).It focuses on
economy-wide phenomena
The economic agents making decisions at each level are:
Decision Maker :Firms
Typical Microeconomic Decisions:What to produce, how much to produce (output), what price to
charge, how many workers to hire, how to minimise costs.
Decision Maker :Government
isthebranch of economicsthatstudies the behavior and decisions of
such as consumers(households), firms, and resource owners. It
focusesonhowtheseindividual units allocatescarceresources and how their interactions
determine
in
.
is the branch of economicsthat studies the economy as a whole (the
and major policy goals, examining issues
thataffectan entire nation orthe globaleconomy.