It is the study of how people allocate scarce resources for production, distribution, and consumption, both individually and collectively. The two branches of economics are microeconomics and macroeconomics. Economics focuses on efficiency in production and exchange.

(a)  

TRUE OR FALSE:

One of the major limitations of economics is that it assumes economic agents are rational and that only economic equilibrium exists.

(a)  

It is the study of economics at the individual, group, or firm level.

(a)  

TRUE OR FALSE

Scarcity means there is a finite supply of goods and raw materials.

(a)  

TRUE OR FALSE:

Unlimited wants mean that there is end to the quantity of goods and services people would like to consume.

(a)  

TRUE OR FALSE:

Applied economics focuses on applying economic principles to a wide variety of fields, such as finance, education, trade, health or the environment.

(a)  

Refers to the test to whether or not the equilibrium price of goods and services is the same of that of suggested price set in the market.

(a)  

Finite resources mean they are (a)   and can run out.

(a)   may be defined as that branch of economic analysis which studies the economic behaviour of the individual unit, maybe a person, a particular household, or a particular firm.