Question

Briefly, explain the terminology of economics?

Answer 1

Economics is the science of analyzing the production, distribution, and consumption of goods and services. In other words, what choices people make and how and why they make them when making purchases.

The study of economics can be subcategorized into microeconomics and macroeconomics. Microeconomics is the study of economics at the individual or business level; how individual people or businesses behave given scarcity and government intervention. Microeconomics includes concepts such as supply and demand, price elasticity, quantity demanded, and quantity supplied. Macroeconomics is the study of the performance and structure of the whole economy rather than individual markets. Macroeconomics includes concepts such as inflation, international trade, unemployment, and national consumption and production

Answer 2

Economics talks about the theories, principles and models that explain to us the market process and it's workings. It further tells us how to allocate scare resources efficiently so that economic welfare can be maximized. It helps us deal with human wants and their satisfaction.

There are two dimensions of economics:

Microeconomics: It is the study of how consumers and businesses make economic decisions. One of the most dire concepts of microeconomics is the law of supply and demand.

Macroeconomics: It is the study of the entire economics. Common study areas include unemployment, inflation, government policies, International trade.