Microeconomics Fundamentals Quiz

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

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

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, and between rational and behavioral economics.

<p>Individual agents in the economy may include households, firms, buyers, and sellers.</p> Signup and view all the answers

<p>Economics as a social science studies the production, distribution, and consumption of goods and services, and focuses on the behavior and interactions of economic agents and how economies work.</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 interaction of production, consumption, saving, and investment, as well as factors affecting employment, currency inflation, economic growth, and public policies.</p> Signup and view all the answers

<p>Positive economics describes 'what is', while normative economics advocates 'what ought to be'.</p> Signup and view all the answers

<p>Rational and behavioural economics distinguish between the traditional economic assumption of rational decision-making and the actual behaviour of individuals.</p> Signup and view all the answers

<p>Economic theory focuses on developing theories and models, while applied economics involves the practical application of economic principles to real-world issues.</p> Signup and view all the answers

<p>Microeconomics and Macroeconomics</p> Signup and view all the answers

<p>Individual agents and markets, their interactions, and the outcomes of interactions</p> Signup and view all the answers

<p>Factors such as employment, currency inflation, economic growth, and public policies</p> Signup and view all the answers

<p>Positive economics (describing 'what is') and normative economics (advocating 'what ought to be'), economic theory and applied economics, rational and behavioural economics</p> Signup and view all the answers

<p>The behaviour and interactions of economic agents and how economies work</p> Signup and view all the answers