Economics: The Study of Choice
Read this chapter to learn about the economic way of thinking and the principles of scarcity and opportunity cost. Be sure to click through each of the sections. Note how individuals and businesses make everyday decisions at the margin. Learn about the differences between macroeconomics and microeconomics.
1.2 The Field of Economics
- Explain the distinguishing characteristics of the economic way of thinking.
- Distinguish between microeconomics and macroeconomics.
We have examined the basic concepts of scarcity, choice, and opportunity cost in economics. In this section, we will look at economics as a field of study. We begin with the characteristics that distinguish economics from other social sciences.