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An Overview of Economics

1 Macroeconomics: an Introduction Chapter 1 An Overview of Economics Internet Edition 2009 (as of Dec. 12, 2008) Copyright 2005-2009 by Charles R. Nelson All rights reserved. ** Outline Preview What are the Economy and Economics ? The Standard of Living Income Inequality The Productivity of Labor economic Growth The Four Sectors of the Economy business Households Government The Rest-of-the-World What is Microeconomics? What is Macroeconomics? Credit Crisis of 2008 and Recession Now! The Twin Deficits: International Trade and the Federal Budget. The Challenge of Globalization Social Security and Medicare; Will They Impoverish the Young?

Business The business sector is where production takes place in the economy. The individual agents making up the business sector are called firms. These are the organizations within which entrepreneurship brings together land, labor and capital for the production of goods or services.

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