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Study of Economics

What is economics?

Economics, at its very heart, is the study of people. It seeks to explain what drives human behavior, decisions, and reactions when faced with difficulties or successes. Economics is a discipline that combines politics, sociology, psychology and history.

Study of Economics

The study of economics can be divided into two types:

Microeconomics is the study of economic activities at the unit level (Unit) or the level of a specific person, or each group of production units or specific units or units of production (Firms), which each group deals with sub-sections. of the economic system, including

1. Household unit

Households are groups of people who live together and play two important roles: the first is the consumer, where members of the household decide the types of goods and services to be produced in the economy (What to Produce), another role is the Resource Owners, who receive income from the sale of the factors of production and when spending money, the income received from households is in the capacity of the consumer.

2. Business unit

Business Firms are economic units that operate business related to production. is a purchaser of household inputs and make decisions about how to produce goods and services that will earn profits as a return on operations

3. Government units

Government (Government) the role of government is more or less. depending on the form of government If a country with a socialist regime Government will play a large role. As for countries with capitalist forms of government The government will play a small role. The basic duty of government is the allocation of resources. income allocation and stabilization

Macroeconomics is the study of economic conditions as a whole. The economic system or the whole country, such as economic system production, consumption, savings and total investment of people, employment, financial and fiscal conditions of the country, etc. Macroeconomics generally covers topics such as national income. economic cycle Inflation and price levels Finance and Public Debt International Economics Finance and financial institutions and development economics, etc.