Economics Flashcards
1
Q
What is Economics?
A
It is a study of the allocation of scarce resources by individuals, businesses and governments
Focuses on the choice of resources for production, distribution and consumption
2
Q
What are the two Branches of Economics?
A
Microeconomics
Macroeconomics
3
Q
What is Macroeconomics?
A
Focuses on the behaviour of the economy as a whole, which is also known as aggregate level
This deals with ALL goods and services produced in an economy and the AVERAGE PRICE LEVEL of those goods
Macroeconomics is also concerned with inflation/recession, taxes, fiscal/monetary policies, and overall levels of unemployment.
4
Q
What is Microeconomics?
A
Focuses on the behaviour of individuals and businesses
