ECONOMICS NATURE AND CONCEPT PART 1 CHAPTER 2

Good day stemians!
How objectives are formed;history records changes in human objectives;sociology interprets human behavior in social contexts.

Standard economics can be divided into two major fields,.The first,price theory or microeconomics,explains how the interplay of supply and demand in competitive markets creates a multitude of individual prices,wage rates,profit margins,and rental changes.Microeconomics assumes that people behave rationally.Consumers try to spend their income in ways that give them as much pleasure as possible.As economists say,they maximize utility.For their part,entrepreneurs seek as much profit as they can extract from their operations.

The second field,macroeconomics,deals with modern explanations of national income and employment.Macroeconomics dates from the,the General Theory of Employment,Interest and Money..explanation of prosperity and depression cantets on the total or aggregate demand for goods and services by consumers,business investors,and governments..Because inadequate aggregate demand increases unemployment,the indicated cure is either more investment by businesses or more spending by government,and consequently larger budget deficits..

THATS ALL FOR TODAY GUYS...
If you missed thechapter 1 click the link below..
https://steemit.com/economics/@bien/economics-nature-and-concept-part-1-chpter-1

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