Economics

What is Economics?

what is economics

Economics is about making the best use of scarce resources to be ‘better off’. Resources to make things in an economy are scarce because they are in limited supply.

The economy must therefore use the resources wisely.

Economics is also about decision making.

Decisions are made by consumers and producers when buying and selling products. They must decide how much to buy and what price to pay.

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09

Apr'18

What is Gross Domestic Product?

What is Gross Domestic Product? What is Gross Domestic Product or GDP is a fundamental question for macroeconomics students. Gross Domestic Product or GDP is the the usual measure for production in an economy. GDP is a measurement for the production of goods and services at the final market price to …

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09

Apr'18

Introductory Macroeconomics Questions and Answers

These introductory macroeconomics questions and answers will direct you to more resources to help in your study of macroeconomics. Introductory Macroeconomics Questions and Answers Hopefully these introductory macroeconomics questions and answers have helped you understand this important topic.

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09

Apr'18

What is the Circular Flow of Income Model?

What is the Circular Flow of Income Model? The Circular Flow of Income Model shows the key relationships of income, expenditure and production in the economy. Expenditure, income and goods and services move through the sectors of the economy because of economic activity. Because of this is hard to understand, …

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03

Apr'18

What is Price Elasticity?

What is Price Elasticity? Price elasticity is the degree to which quantity is changed by price movements. Price elasticity is the degree of demand and supply quantity movements in a market from price movements. Demand and supply diagrams show the effects of price elasticity. Effects of an increase in prices on quantity Inelastic …

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19

Mar'18

What is Demand and Supply?

What is Demand and Supply? Demand and supply is a fundamental concept in economics. In a market, the forces of demand and supply interact to create the ‘price mechanism‘. This is the way a market economy works. Demand comes from the buying (consumer) side of a market, whilst supply is …

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