Economics can be divided into different areas of study:
- Consumption: How people use goods and services to maximize satisfaction. Example: why do some people buy luxury cars while others buy cheaper ones?
- Production: How businesses decide what to produce, in what quantity, and at what cost. Example: why does Apple produce iPhones in China but design them in the USA?
- Distribution: How income and wealth are shared among people. Why are some countries rich and others poor? Why does inequality exist?
- Exchange: How goods and services move through markets. This includes domestic trade and international trade.
- Public Finance: How governments collect taxes and spend money.
- Economic Development: How countries improve living standards, reduce poverty, and create jobs.
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