Economic Issues - Introduction

Comments · 973 Views

The fundamental economic problem is that the matter of scarcity but unlimited wants. Scarcity implies there’s only a limited quantity of resources, thanks to scarcity, there’s a relentless cost – if you utilize resources to consume one good, you can’t consume another.

Economic issues are divided into two groups. They are –                                                                                                          

  • Microeconomics Issues - Microeconomics is that the study of people, households and firms' behaviour in higher cognitive process and allocation of resources. It generally applies to the markets of products and services and deals with individual and economic issues. One of the often problems are economic decisions which might have external effects on other people without any involvement in the transaction. Example – If the production of power from coal is done, then the produced pollution affects all over the world as a result of acid rain, global warming, etc.

 

  • Macroeconomics Issues - Macroeconomics deals with the entire financial system like value, total savings and investment, total employment, total demand, total supply, general index number, etc. Macroeconomics Problems arise when the company doesn’t adequately achieve the goals of economic condition, stability, and economic process. As a result of a cascading effect. Example – Unemployment, Recession, etc.
Comments