Fundamentals of Economics

Front

What is economics?

Back

Economics is the study of how individuals or societies use limited resources to produce goods and services and how those goods are distributed to satisfy the needs and wants of the people.

Front

What are the two main branches of economics?

Back

Microeconomics and Macroeconomics.

Front

What does microeconomics study?

Back

Microeconomics studies the behavior of individual economic agents such as consumers, businesses, and industries.

Front

What does macroeconomics focus on?

Back

Macroeconomics looks at the economy as a whole, focusing on national economic performance.

Front

What are supply and demand?

Back

Supply and demand are the most used concepts in economics that explain how markets move.

Front

Define 'market' in economics.

Back

A market is the place/space where a group of buyers and sellers gathers for a particular good or service.

Front

What determines demand in a market?

Back

Buyers determine the demand.

Front

What determines supply in a market?

Back

Sellers determine the supply.

Front

What are the two variables in a market?

Back

Price and quantity.

Front

What is quantity demanded?

Back

Quantity demanded is the quantity of a good that buyers can and are able to buy.