Question

What is the Study of Economics?

     What is Macroeconomics?

     What is Microeconomics?

     In Economics, who does Scarcity affect, the rich person or the poor person and how?

Answer 1

Answer : a) "The study of economics" is that study which research how individuals and society use the limited resources to produce valuable goods. When resource is limited then society has to decide how this limited resource can be useable in production. After this decision society efficiently allocate this limited resource to all.

b) "Macroeconomics" is a part of whole economics. Simply macroeconomics studies the growth rate and behaviour of whole nation. Macroeconomics studies the aggregates of GDP (Gross Domestic Products), inflation and unemployment.  

c) "Microeconomics" is an another part of whole economics. Simply microeconomics studies the individual, business and group decisions of how they use and allocate the limited resources. When resources are limited then they have to decide how they can use this limited resources in the best way. And based on this they allocate this limited resources between them.

d) Scarcity affects both the rich person and poor person. Because when resources are limited then productions are also limited. When production is limited then there is no matter how rich and how poor you are. Both the rich person and poor person get not enough quantities of goods for their consumption.

For example : Let because of disaster the most of seeds of rice production damages. As a result the economy faces a limited rice production situation. Because of this limited production the rice is distributed to all in the best possible way. But this distribution of limited rice is not enough to meet the desired consumption level. In this situation both the rich persons and poor persons are affected by the scarcity.