The Influence Of Microeconomics In Canada

Economics is the study of how goods and services are produced, distributed and sold to consumers. It is a social science that affects every human living on earth, however, many people are not aware of the different economic concepts and how they influence the community they live in. The Canadian economy is in a constant state of fluctuation that can be impacted by multiple factors. The different economic concepts allow us to properly evaluate purchasing decisions and why prices or policies are presented as they are. There are two main levels of economics that each impact the nation’s economy in their own way. Macroeconomics is the level of economics that deals with the large-scale factors that influence the nation, such as financial interest rates and government policies. In contrast, microeconomics is the level of economics that deals with small-scale factors that relate to individual or business decisions, relating to supply and demand, and how they influence the economy. Without reading the newspaper, many Canadians are unaware of these economic factors and do not realize the consequences each factor can have on the country. There are economic events occurring daily across Canada, which would allow citizens to properly understand how their decisions are affecting the community around

Consumer spending was low, businesses were struggling and certain corporations where failing to adapt to our changing economy. During this time, the public focused on key world issues, such as global warming and pollution, which guided consumers to become more environmentally responsible and more efficient. Innovation was high and the production of cost efficient products increased to fulfill the demand of consumers. General Motors (GM), once a leader in the automotive industry, failed to adapt to economic change and made a series of poor decisions on a microeconomic