Economics analyses choice. Since choice is universal and constant, the subject matter of economics is immense. Visit the McEachern Interactive Web site and list some of the choices discussed or implied in the first 4 EconDebates OnLine. Microeconomics analyses the choices made by individuals, organizations, and governments. Macroeconomics analyses how these choices affect the overall level of economic activity in a country.
Individuals make the best choice they can, given the information at hand.
An increase in benefits will result in more of an activity. Notes for pp. A model is a simplification of reality that is used to make predictions. It captures what are believed to be the important elements of a problem. Tests of a model are conducted by comparing its predictions with evidence.