A1+-+study+of+Econ

==The study of economics is a social science that analyzes how society, institutions, and individuals make descisions under conditions of scarcity. It is divided in two sections: microeconomics and macroeconomics. == ==Microeconomics is the study of the individual parts of the economy, the household and the firm, how prices are determined and how prices determine the production, distribution and use of goods and services. == ==Macroeconomics is the study of big decisions at a whole and how the decisions of firms and individuals affect the economy. In macroeconomics, the subject is usually a nation, how all markets interact to generate big occurance that economists call aggregate variables. In the area of microeconomics, the object of analysis is a single market, for example, whether price rises in the automobile or oil industries are driven by supply or demand changes. In Aaron's words, macroeconomics is the study of the sum total of economic activity, dealing with the issues of growth, inflation and unemployment, and with national economic policies relating to these issues. ==