What you’ll learn to do: define economics and explain the difference between macroeconomics and microeconomics

From the purchase of the latest iPhone to the sale of tickets to a popular concert or movie, economic forces are at work in even the simplest of personal and business transactions. In order to truly understand the science of economics, economists have to consider both the small picture (how individuals make decisions) and the big picture (how entire countries make decisions), which is why the first section of this module covers the two branches of economics: macroeconomics and microeconomics. Decisions made by governments impact the decisions made by business. Decisions made by business impact the decisions made by governments. When we put these two pieces together, you will be able to answer the question “What is economics?”

LEARNING ACTIVITIES

The learning activities for this section include:

• Video: What Is Economics?
• Reading: Economics and Scarcity
• Reading: The Division and Specialization of Labor
• Reading: Microeconomics and Macroeconomics
• Self Check: What is Economics?

Take time to review and reflect on each of these activities in order to improve your performance on the assessment for this section.