Basics of Micro and Macro Economics

What does economics study?

• How people, businesses, and governments make decisions about resources
• The political systems of different countries
• The study of animals and plants
• The study of the universe

What are the two main branches of economics?

• Microeconomics and Macroeconomics
• Supply and Demand
• Fiscal and Monetary Policy
• Capitalism and Socialism

What does microeconomics focus on?

• The economy as a whole
• Individual parts of the economy
• The government's role in the economy
• The history of economic systems

What might microeconomics study in the context of a toy company releasing a new action figure?

• How the price of the action figure affects how many units consumers buy
• The global impact of the toy industry
• The history of the toy company
• How toys are made

What does macroeconomics focus on?

• Individual parts of the economy
• The economy as a whole
• The history of economic systems
• The government's role in the economy

Which field of economics might study inflation?

• Microeconomics
• Macroeconomics
• Both Microeconomics and Macroeconomics
• Neither Microeconomics nor Macroeconomics

Which field of economics might study unemployment?

• Microeconomics
• Macroeconomics
• Both Microeconomics and Macroeconomics
• Neither Microeconomics nor Macroeconomics

Which field of economics might study how a decrease in overall spending in the economy could lead to a rise in unemployment?

• Microeconomics
• Macroeconomics
• Both Microeconomics and Macroeconomics
• Neither Microeconomics nor Macroeconomics

How are microeconomics and macroeconomics connected?

• They are completely separate fields
• Decisions made by individuals and businesses shape the larger economic trends that macroeconomics studies, and those trends, in turn, affect the decisions made by individuals and businesses
• They both study the same phenomena, but from different perspectives
• They are not connected at all

How can understanding both micro and macroeconomics help us?

• It helps us make informed decisions as consumers, business owners, and policymakers
• It doesn't help us at all
• It helps us understand the history of economic systems
• It helps us understand the universe