Mastering the Principles

Microeconomics focuses on analyzing individual agents and markets, and the outcomes of their interactions.

Macroeconomics analyzes the economy as a system, including the interactions between production, consumption, saving, and investment, as well as factors affecting it.

The broad distinctions within economics include positive economics (describing 'what is') and normative economics (advocating 'what ought to be'), as well as the distinction between economic theory and applied economics, and between rational and behavioural economics.

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

<p>Macroeconomics analyzes factors such as employment of the resources of labour, capital, and land, currency inflation, economic growth, and public policies that impact these elements.</p> Signup and view all the answers