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What is Economics and What are the Basics?

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Economics can be described as a field that studies choices and scarcity whereby scarcity means that there is a fixed amount of either a service or good which means it is limited. Therefore studying economics helps in making decisions on how to allocate the limited resources wisely in order to deal with the condition of scarcity. The key features that choice has are trade-off what you did not choose this can be related to the opportunity cost concept which is an important aspect of economic choices.

What are the Main Branches of Economics?

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Economics is a discipline that is organized into two areas that are microeconomics and macroeconomics. Microeconomics generally does an analysis of single business sectors of the economy; under this area, there is usually elasticity, supply, and demand, as well as the market structure which is the level of competition in a specific industry. Macroeconomics is a field that analyses a broader aspect of a country’s economy in this field GDP, inflation, unemployment and the governments’ tool that deal with the economic situations is studied.

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