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The study of economics is concerned with the production, circulation, and consumption of products and services. It also includes the notions of production and consumer demands for commodities and services. It analyzes customer behaviour and refers to how the government allocates finite resources efficiently and effectively to meet and fulfil people's requirements. It is a broad topic that encompasses a person's, country's, and global interests, such as trade, market needs, equality, and democracy.
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The study of economics allows us to comprehend many elements of a business. The economy is split into three categories. The market economy is one in which business outputs are entrusted to the impulses of market forces. A capitalist economy is one in which economic factors are controlled by a central power or one in which the government is running the economy. A mixed economy has elements of both a market and a centrally planned economy. Microeconomics and macroeconomics are the two major areas in which economics is studied.
Microeconomics is the study of how people, communities, and organizations make choices depending on the resources they have available. This helps economists to predict how the whole economy will react in the event of resource surpluses or shortages. The products and services market may then utilize these judgments to identify influential variables that will help them make the necessary modifications to keep economic activity in the sector.
Macroeconomics is the study of finances from a broader perspective, taking into account the economy of a country, region, or the entire world. Macroeconomics is the study of economic activity at a large scale. It encompasses the phenomena of inflation, national income, GDP (Gross Domestic Product), growth rate, changes in labour, and inflation rates, as well as their implications for globalized trade.
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