Our primer on economics will help you understand the theory and principles behind the workings of an economy. Microeconomics addresses issues such as how prices are set and market places are organized. The topic also addresses the forces of supply and demand at the heart of an understanding of economics. Macroeconomics brings together the component pieces that help shape the output of an economy and that cause an economy to thrive.
Introduction to Macroeconomics
Macroeconomic theory is concerned with the size and output of a national economy. Economists measure the gross domestic product (GDP) of the economy, comprising inputs from individual macro pieces. Employment, consumer and government spending are a couple of the important pieces of the pie that drive growth in GDP.
Introduction to Microeconomics
Economists refer to an opportunity cost as the benefit of performing an action or purchasing one good instead of another. Because we can always do something else, or buy a different product, opportunity costs matter because we can better understand or measure human behavior.
Theory of Production
Theory of Consumer Demand
In the Theory of Consumer Demand economists look at how consumers’ preferences for goods and services are used in order to create a demand curve. The theory further examines how consumers arrive at an equilibrium between their preferences for those goods and services while maximizing the utility from consuming them subject to the constraint of a budget.