Aggregate Variable
Microeconomics studies these
Mircroeconomics
The branch studies the behavior of individual firms and households
Positive economics
Analysis that explains how things work in the economy
Normative economics
Analysis that explains what types of policies should be applied
Butcher, Baker, Brewer
Three professions from Adam Smiths story
Greed, Self-Interest
What does Adam Smith say in the Wealth of Nations motivates production activity?
Utility
Economics assume consumers act to maximize this
Profit
Economists assume firms attempt to maximize this
Consumption of goods and services
Economics analysis focuses on consumer satisfaction that arises in what way?