Unit 1: Overview of Economics
The study of microeconomics focuses on exchanges among consumers and firms that are in the market to purchase goods and services. In contrast, macroeconomics focuses on exchanges that take place across all of the markets within a country. We take the interrelated actions of consumers, businesses, government agencies, financial intermediaries, and global trading partners into account, as they exchange resources, goods, and services, and facilitate currency and quantity flows. Microeconomics studies how to achieve profit maximization, while macroeconomics studies how to achieve economic stability and growth on a national level.
Completing this unit should take you approximately 17 hours.
Upon successful completion of this unit, you will be able to:
- identify the determinants of demand and supply;
- describe how changes in demand and supply lead to changes in a market's equilibrium price and quantity;
- distinguish microeconomics from macroeconomics; and
- describe the circular flow model, identifying linkages between the markets for goods and resources as well as the exchanges between businesses and households.