Introductory Economics

This chapter provides a introduction to the study of economics. Economics is the study of how consumers, firms, and governments make decisions that together determine how resources are allocated. An appreciation of economics and the general workings of the economy have become increasingly necessary to understand government policymaking, the conduct of businesses, and the enormous changes in economic systems which are occurring throughout the world. This chapter covers microeconomics and macroeconomics, including topics such as production, markets, demand and supply, inflation, and consumer behavior.