1. Section 1. Microfoundations: Concepts for Making Consumer Decisions What is the difference between microeconomics and macroeconomics?

2. Microeconomics: focuses on the behavior of individual consumers, households, & businesses. Examples: 1. Why do some couples choose to have three children while others elect to have none? 2. Why do some families carry life insurance while others do not? 3. Why do some families save to purchase major appliances while others buy them on credit?

4. Proverb #1: Families are a bit like firms

13. The Time Costs of Preparing Dinner

20. So, what are the costs of your time (I.e. time costs)? Weekly earnings in 2009 Total $738 Men 16-24 $448 24+ $870 Women 16-24 $415 24+ $691 Source: Bureau of Labor Statistics, First Quarter Earning 2006