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Microeconomics assignment topics focus on how people make decisions, what factors influence those decisions, and how those decisions affect product marketplaces by changing costs, supply, and demand.
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There are three kinds of economics:
A market economy is one in which economic activity are free to be determined by market forces. In the United States, corporations determine their own prices and can sell goods or services at whatever price buyers are willing to pay. It is also known as a free economy.
A centrally planned economy is one in which economic activity are centralized; in other words, these economies are governed by the government.
The mixed economy incorporates the characteristics of both a market economy and a centrally planned economy.
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The supply-demand relationship: There is a direct relationship between supply and demand. It means that if the demand for a product rises, so will supply, and vice versa.
Consumer Equilibrium: The condition of equilibrium obtained by a consumer when he spends his existing income on goods or services. It allows the consumer to be satisfied with their earnings.
Inflation: Simply put, inflation is a price increase. In other terms, inflation is a rapid rise in the price of a commodity in an economy over time. It affects the purchasing power of a currency.
The inverse relationship between demand and price: The inverse relationship between demand and price. It means that as demand for a product increases, the price decreases, and when demand decreases, the price increases.
GDP is a monetary measure of the market value of finished products and services produced within a country’s geographical borders during a fiscal year. GDP is normally computed annually, although it can also be computed quarterly.
The monetary worth of products and services produced in a country throughout a fiscal year is referred to as national income. To put it another way, it is the entire amount of money earned in a country within a fiscal year.
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