Fundamentals Of Economics, Microeconomics, And Macroeconomics And Types Of Economics and Supply And Demand

The fundamental economic problem is scarcity — unlimited human wants confronting limited resources — which forces individuals, firms, and governments to make choices about resource allocation.

Study of individual economic units like households and firms.

Microeconomics studies the behaviour of individual units such as consumers, firms, and markets, while macroeconomics analyses the economy as a whole, focusing on aggregates like GDP, inflation, and unemployment.

Aggregate variables like national income, inflation, and employment.

The Law of Demand states that, ceteris paribus, as the price of a good rises, the quantity demanded falls, and vice versa, establishing an inverse relationship between price and quantity demanded.

Limited resources relative to unlimited wants force allocation decisions.

'Ceteris paribus' is a Latin phrase meaning 'all other things remaining equal,' used to isolate the effect of one variable on another while holding all other influencing factors constant.

Economic goods are scarce and have price; free goods are unlimited.