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)
A central authority (the government) decides what is produced and at what price.
A blend of both, which most modern countries (including the U.S.) use to balance freedom with social safety nets. 💡 Factors of Production
How our willingness to buy (demand) and a business's ability to sell (supply) determine the price of everything from coffee to iPhones.
