1.1.1 the two branches of economics and the main forms of economic analyses

Question 1

What is economics?

Answer 1

Economics is a study of how economic agents best allocate resources in relation to relative scarcity

Question 2

Branches of economics?

Answer 2

1. Microeconomics
2. Macroeconomics

Question 3

Explain microeconomics.

Answer 3

Microeconomics is the branch of economics that studies the behaviour and decisions of individual aspects of the economy.

Question 4

Explain macroeconomics.

Answer 4

Macroeconomics is the branch of economics that is concerned with the behaviour of an economy as a whole.

Question 5

Branches of economic analysis?

Answer 5

Positive and normative

Question 6

Explain positive economics?

Answer 6

Is the branch of economics in which fact-based statements can be tested or verified to be either true or false, using evidence.

Question 7

Normative economic analysis?

Answer 7

The branch of economics that statements that make a valuable judgment about what ought to be or what should be