FAQ About Economics
What is economics?
People are an entity that sustain their material life by consuming produced goods and services. The production, distribution and consumption of goods and services constitute the economic field of social life.
Economics; It is both a social and technical science that examines the functioning of the economy, market processes, the effects of the state on the economy and market interventions.
What is the difference between macroeconomics and microeconomics?
Microeconomics is the science that studies specific markets and economic segments. It examines topics such as consumer behavior, individual labor markets, and theory of firms.
Macroeconomics is the branch of science that examines the entire economy.
What are the sub-branches of economics?
- Economic History
- History of Economic Thought
- International Economics
- Development Economics
- Public Economics
- Political Economy
- Environmental Economics
- Industrial Economics
- Labor Economics
- Agricultural Economics
- Tourism Economics
- Business Economics
- World Economics
Which subjects fall within the field of economics?
Basic events and institutions of economic life; tools used; national income, the links of national income with these factors, welfare and the causes and consequences of depressions; mutual effects of savings and investments; effects of purchasing power on income and employment; relations, causes and consequences of monetary policy and fiscal policy; economic development and economic growth; economic balance in development, optimum balance; supply and demand situations; formation of national income; analysis of prices (Microeconomics); fees; profit, interest and rent; analysis of international trade, economic relations, analysis of the economic structures of countries (developed, underdeveloped, developing) in terms of causes and consequences, inflation, deflation, etc.
Subjects such as these are within the scope of the study of economics.
What is inflation?
Inflation represents the rate at which the general price level of goods and services rises and thus the purchasing power of money falls.
It reduces the purchasing power of the national currency and brings with it negative effects.
What is the market and demand?
It is the willingness and ability to buy a certain good or service at various prices at a certain time and under the assumption of ceteris-paribus (other factors affecting demand are constant).
What are the types of demand elasticity?
- Price elasticity of demand,
- Cross elasticity of demand,
- Income elasticity of demand,
- Advertising elasticity of demand.
What are the factors affecting demand other than price?
Changes in the price of other goods affect demand. Changes in the prices of complementary and competing goods directly affect demand.
What are the factors affecting demand?
We can define the demand as the consumer's desire to obtain a certain amount of money voluntarily and within their means in return for a certain financial price. In this case, it is necessary to add at least 2 more factors to the factors affecting the demand. Willingness to buy expresses 'want', the basis on which economists base tastes and preferences. If you don't need or want something, you don't buy it. The ability to buy also reveals the importance of income. On the other hand, related goods also affect demand.
What are the factors affecting supply?
A supply curve shows how the quantity supplied will change as the price rises and falls; here the assumption of ceteris paribus applies, that is, other economically relevant factors remain unchanged. If other factors related to supply change, then the entire supply curve will shift. A shift in supply means that there will be a change in the quantity supplied at each price level.
Other factors that change the supply are like this;
- Natural conditions,
- New technology,
- Government policies.