Economics 101

Microeconomics focuses on the behavior and interactions of economic agents and how economies work.

Some examples of individual agents in economics are households, firms, buyers, and sellers.

Macroeconomics analyzes the economy as a system where production, consumption, saving, and investment interact, and factors affecting it.

<p>The broad distinctions within economics include those between positive economics and normative economics, between economic theory and applied economics, and between rational and behavioral economics.</p> Signup and view all the answers

<p>Normative economics advocates 'what ought to be'.</p> Signup and view all the answers

<p>Economics studies the production, distribution, and consumption of goods and services.</p> Signup and view all the answers

<p>Microeconomics analyzes individual agents and markets, their interactions, and the outcomes of interactions.</p> Signup and view all the answers

<p>Macroeconomics analyzes the economy as a system where production, consumption, saving, and investment interact, and factors affecting it.</p> Signup and view all the answers

<p>Examples of factors analyzed in macroeconomics include employment, inflation, economic growth, and public policies.</p> Signup and view all the answers

<p>The distinctions within economics include positive economics versus normative economics, economic theory versus applied economics, and rational economics versus behavioural economics.</p> Signup and view all the answers