Eco 1/3 What Do Economists Do?

Microeconomics vs. Macroeconomics Microeconomics- deals with behavior and decision making by small units (individuals and firms.) Macroeconomics- deals with the economy as a whole and decision making by governments.

Economic Models Simplified representations of the real world. Show consumer, business or other economic behavior, like the production possibilities curve.

Schools of Economic Thought Economists often disagree. Political leaders take sides and direct economic policies accordingly.