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SBA: The abbreviation for Small Business Administration, which is an independent federal agency that was started in 1953 to help small business. It provides a variety of assistance, including financial, technical, and managerial help. It helps other agencies in the federal government direct contracts and spending in the direction of proprietorships and small corporations. It also provides low interest loans to small businesses that suffer from natural disasters.

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Lesson 9: Macro Basics | Unit 1: The Macroeconomy Page: 2 of 16

Topic: Macroeconomics <=PAGE BACK | PAGE NEXT=>

Macroeconomics is the study of the entire economy, the aggregate economy. Microeconomics is the study of parts of the economy.
  • Economists first studied parts of the economy (markets, demand, supply, and prices), what we now call microeconomics.
  • The Great Depression of 1930's, motivated economists led by John Maynard Keynes, to study macroeconomics.
Microeconomics and macroeconomics have their own principles, theories, and phenomena. Both are part of economics and each is intertwined with the other.
  • The macroeconomy affects microeconomic decisions.
  • Microeconomic decisions affect the macroeconomy.

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GOVERNMENT BUREAUCRACIES

Relatively complex government organizations that operate according to rules and procedures to implement the programs and policies of political leaders. A bureaucracy is a complex organization that usually contains hundreds or even thousands of employees, each with different duties and responsibilities. Bureaucracies exist in all types of organizations -- private, public, government, business, charities, corporations, even households. The study of public choice indicates that government bureaucracies are one source of government inefficiency. Other sources are politicians, voters, and special interest groups.

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Today, you are likely to spend a great deal of time browsing through a long list of dot com websites wanting to buy either a large, stuffed kitty cat or a cross-cut paper shredder. Be on the lookout for broken fingernail clippers.
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Woodrow Wilson's portrait adorned the $100,000 bill that was removed from circulation in 1929. Woodrow Wilson was removed from circulation in 1924.
"After climbing a great hill, one finds many more hills to climb. "

-- Nelson Mandela, president of South Africa

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