Economics

Question 1

What is microeconomics?

Answer 1

Microeconomics is the study of particular markets and segments of the economy

Question 2

What is macroeconomics?

Answer 2

Macroeconomics is the study of the whole economy and the aggregate variables as a whole.

Question 3

What is consumer choice?

Answer 3

Consumer choice is the idea that consumers want to get the most utility from their goods with the limited monetary resources.

Question 4

What is one of the main differences between macro and micro economics?

Answer 4

• Small segments of economy vs whole aggregate economy
• Microeconomics works on the idea that markets will be equilibrium while macro means that it will be disequilibrium
• The basic principles of microeconomics are sure and set while the macro economics are not as easily agreed on.
• Macroeconomics is better on empirical data while micro tends to be based on theory

Question 5

What are the four key economic concepts?

Answer 5

The four economic concepts are scarcity, supply and demand, costs and benefits, and incentives.

Question 6

What is scarcity?

Answer 6

Scarcity is the idea that there are only a limited amount of resources in a market.

Question 7

What creates the supply and demand market?

Answer 7

A supply and demand market is driven by the individual who needs items from the market.