Introduction to Microeconomics

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

Macroeconomics analyzes the economy as a system where production, consumption, saving, and investment interact, and factors affecting it: employment of the resources of labour, capital, and land, currency inflation, economic growth, and public policies that have impact on these elements.

The broad distinctions within economics include those between positive economics, describing 'what is', and normative economics, advocating 'what ought to be'; between economic theory and applied economics; between rational and behavioural economics.

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

<p>Examples of individual agents in microeconomics are households, firms, buyers, and sellers.</p> Signup and view all the answers

<p>Fiscal policy is the use of government revenue collection and expenditure to influence a country's economy.</p> Signup and view all the answers

<p>The British economist John Maynard Keynes.</p> Signup and view all the answers

<p>It developed in reaction to the Great Depression of the 1930s, when the previous laissez-faire approach to economic management became unworkable.</p> Signup and view all the answers

<p>Fiscal and monetary policy.</p> Signup and view all the answers

<p>2%–3%.</p> Signup and view all the answers