U3 AOS 1 What is economics?

Question 1

Economics

Answer 1

examines choices or decisions whereby limited resources are used to produce goods and services to help satisfy needs and wants, and improve living standards.

Question 2

Microeconomics

Answer 2

is a branch of economics that examines individual decision making by firms and households, and how this impacts on a particular market for a single good or service.

Question 3

Macroeconomics

Answer 3

is a branch of economics that examines the workings and problems of the economy as a whole (i.e. consisting of the sum of all markets and industries). It focuses on aggregate demand, GDP, inflation and unemployment nationally.