INTRO TO MICROECONOMICS

MICROECONOMICS:An economic focus on the decision making of individuals and businesses.

It’s like looking at the economy through a

microscope.

MICROECONOMICS:In microeconomics, we talk of an individual, household, or firm. We measure the price of a specific product, the number of workers employed by a single firm, the revenue or income of a particular firm, or household, or the expenditures of a specific firm, government entity, or family.

MICROECONOMICS:

Individual

Household

Firm

A “firm” is a business - especially one with

multiple owners and employees.

THE FREE MARKET:Last Unit: Capitalism Socialism

Communism

All of these economic systems

are “mixed economies” - a mixture of free

market and command features.

Thus, every economy that exists in the world has elements of a free

market: a market controlled by supply and

demand.

SUPPLY AND DEMAND:The willingness and ability to

buy something.

Consumers demand things.

The willingness and ability to

produce something.

Producers supply things.

DEMAND

ECON CLASS AUCTION:You will be given 24,000 “won”.

Do your best to purchase something, (or multiple things!),

during the class auction.

Raise your hand

to make a bid!

REFLECT:1. Which items received the

most bids? Which received the fewest? Why?

!

2. Describe the relationship between PRICE and the number of people DEMANDING an item.

Respond to the following questions in your notes: