WHATS? Study of the behavior of the whole (aggregate) economies or economic systems instead of the behavior of individuals.

HOW? When economists study the economy as a whole, they must consider the decisions of individual economic actors. And how aggregate f

MACROECONOMICS

FOR WHOM? For the whole.

AGGREGATE FACTORS:
Employment,
inflation,
and gross domestic
product.
BRANCHES
WHATS? Analyzes the market behavior
of individual consumers and firms in an attempt to understand the decision-making process of

HOW? Examines smaller units of the overall economy.

MICROECONOMICS
FOR WHOM? Individuals.

SCARCITY

ECONOMICS
THE ECONOMIC THEORY
Analyzes the production, distribution, and
consumption of goods and services.

Denotes the most effective use of a society's resources in satisfying

peoples wants and needs. It means that the economy's resources are being
EFFICIENCY
used as effectively as possible to satisfy people's needs and desires

SUPPLY

THE MARKET

Problem that arises because people have unlimited wants but resources are
limited. Because of scarcity, various economic decisions must be made to
allocate resources efficiently.

Represents how much the market can offer. The quantity supplied refers to the
amount of a certain good producers are willing to supply when receiving a
certain price.

Refers to how much (quantity) of a product or service is desired by buyers. The

quantity demanded is the amount of a product people are willing to buy at a
DEMAND
certain price