Mastering the Fundamentals of Economics

Economics is the social science that studies how individuals, businesses, governments, and societies allocate scarce resources to satisfy unlimited wants.

The nature of economics is both a positive science, which seeks to explain how the economy works, and a normative science, which seeks to provide guidelines for improving economic outcomes.

The scope of economics includes studying various economic phenomena such as production, distribution, consumption, and the behavior of individuals, businesses, and governments in the economy.

<p>Demand in economics refers to the quantity of a good or service that consumers are willing and able to purchase at various prices during a specific period of time.</p> Signup and view all the answers

<p>The law of demand states that, all else being equal, as the price of a good or service increases, the quantity demanded for that good or service decreases, and vice versa.</p> Signup and view all the answers

<p>According to the law of demand, there is an inverse relationship between the price of a good or service and the quantity demanded. When the price increases, the quantity demanded decreases, and when the price decreases, the quantity demanded increases, assuming all other factors remain constant.</p> Signup and view all the answers