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What is economics.

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What is economics? What role does economics play in your personal and organizations decisions? Give an example of the role of economics in decision making.

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Economics is the social science that studies the production, distribution, and consumption of goods and services. Economics aims to explain how economies work and how economic agents interact. The primary textbook distinction between several classification of economics is between microeconomics, which examines the economic behavior of agents (including individuals and firms) and macroeconomics, addressing issues of unemployment, inflation, monetary and fiscal policy for an entire economy.

Microeconomics looks at interactions through individual markets, given scarcity and government regulation. It takes into account demand and supply concepts and determines optimal production quantities and prices. Market structures, such as perfect competition and monopoly, are examined as to implications for behavior and economic efficiency. General-equilibrium theory allows for changes in different markets and ...

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See Also This Related BrainMass Solution

Short answer questions in economics: economics, market economy, command economy,supply and demand

Questions (also attached):

1) What is economics?
2) What types of things are considered in economics? What is not?
3) What role does economics play in your personal decisions?
4) What are the advantages of a market versus a command economy?

1. What is the difference between the shift of and a movement along the demand curve?
2. What is the difference between the shift of and a movement along the supply curve?
3. How do shortages and surpluses develop?
4. What types of shortages and surpluses affect you either personally or in your work environment?

2. Answer the following questions:
a. What causes the changes in supply and demand?
b. How do shifts in supply and demand affect your decision making?
c. List four key points in the study of economics.

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