Denand supply

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Questions and Answers

What does macroeconomics analyze?

Social institutions and philosophy
The economy as a system and its interactions (correct)
Microeconomic factors only
Historical economic trends

What does microeconomics focus on?

Government policies and regulations
Social institutions and philosophy
Macroeconomic factors only
Individual agents and markets (correct)

What is the distinction between positive economics and normative economics?

Describing 'what is' vs advocating 'what ought to be' (correct)
Describing 'what ought to be' vs advocating 'what is'
Comparing economic theories vs applying economic principles
Analyzing current economic trends vs predicting future trends

Where can economic analysis be applied?

Business, finance, cybersecurity, and health care (D) Signup and view all the answers

What are the broad distinctions within economics?

Between economic theory and applied economics (A) Signup and view all the answers

What does microeconomics analyze?

Individual agents and markets (C) Signup and view all the answers

What does macroeconomics analyze as a system?

Production, consumption, saving, and investment (D) Signup and view all the answers

What is the distinction between positive economics and normative economics?

Describing 'what is' vs advocating 'what ought to be' (D) Signup and view all the answers

Where can economic analysis be applied?

Business, finance, and government (D) Signup and view all the answers

What are the broad distinctions within economics?

Between positive economics and normative economics (B) Signup and view all the answers

Flashcards

Macroeconomics

Analyzes the economy as a whole system and its interactions.

Microeconomics

Focuses on individual agents (like consumers or firms) and specific markets.

Positive vs. Normative Economics

Positive economics describes 'what is,' focusing on facts. Normative economics advocates 'what ought to be,' involving opinions.

Economic Theory vs. Applied Economics

Economic theory focuses on models; applied economics uses these models to explain real-world phenomena.

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Macroeconomics analyzes

Analyzes production, consumption, saving, and investment at a system-wide level.

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Study Notes

Economics Overview

Macroeconomics analyzes economic systems as a whole, including issues such as inflation, unemployment, and economic growth.

Microeconomics vs. Macroeconomics

Microeconomics focuses on individual economic units, such as households, firms, and markets, examining their behavior and decision-making processes.
Microeconomics analyzes the interactions among these units and the prices of goods and services.

Positive Economics vs. Normative Economics

Positive economics is concerned with describing and analyzing economic phenomena, focusing on what is, without making value judgments.
Normative economics, on the other hand, involves making recommendations and prescribing policies based on value judgments about what should be.

Applications of Economic Analysis

Economic analysis can be applied to various fields, including business, finance, government, healthcare, and environmental policy.

Distinctions within Economics

The broad distinctions within economics include microeconomics, macroeconomics, and international economics, which examine the economy at different levels and scopes.