Economists split the world into two main views to understand how we function: 1. Microeconomics (The Small Scale) Focuses on how individuals and businesses make decisions.
We usually decide based on the "next" unit. (e.g., "Is the extra hour of sleep worth the extra stress of being late?"). 2. Macroeconomics (The Big Picture) economicsandwe
Decisions are made by us as individuals and private businesses. Economists split the world into two main views
A central authority (the government) decides what is produced and at what price. economicsandwe
To create anything for "us" to consume, we need four ingredients: Natural resources (water, oil, minerals). Labor: The effort and skills people provide. Capital: The tools and machinery used to make other things.