Microeconomics

Branch of economics that deals with the behavior of individual economic units—consumers, firms, workers, and investors—as well as the markets that these units comprise.

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Microeconomics

Branch of economics that deals with the behavior of individual economic units—consumers, firms, workers, and investors—as well as the markets that these units comprise.

It attempts to explain how and why these units make economic decicions - how consumers make purchasing decisions and how their choices are affected by changing prices and incomes.

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Macroeconomics

Branch of economics that deals with aggregate economic variables, such as the level and  growth rate of national output, interest rates, unemployment, and inflation.

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Consumers

Have limited incomes, which can be spent on a wide variety of goods and services, or saved for the future.

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Workers

First, people must decide whether and when to enter the workforce (number of jobs and payscales available, depending on educational attainment and accumulated skills). Must decide on whether to work now (immediate income) ot continued education (potential higher income).

Second, workers face trade-offs in their choice of employment. Security, potential advancement.

Finally, workers must sometimes decide how many hours per week they wish to work, thereby trading off labor for leisure.

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