Comprehension

1. Match these sentence halves describing economics and its two areas.

1. Microeconomics is	a) the economic behavior of individual consumers, firms, and industries.
2. Economics is	b) one of the two main fields of the social science of economics.
3. Microeconomics is the study of	c) the influence of all economic factors on each other.
4. Macroeconomics seeks to understand	d) a social science concerned with the production, distribution, exchange, and consumption of goods and services.

2. Decide whether the following statements are True or False.

1. Resources should be distributed in the best way to meet the needs of people.

2. The study of macroeconomics is an extremely important issue.

3. Microeconomics is one of the largest subfields in economics.

4. Microeconomics is the analysis of the decisions made by individuals and groups.

5. Macroeconomics deals with economic decisions made at a low level.

6. The two studies of economics complement each other.

3. Answer the questions.

1. What is economics?

2. Why is it important to study economics?

3. Is microeconomics the study of the economic behaviour of small economic groups?

4. What kind of analysis is microeconomics?

5. What does macroeconomics examine?

6. What questions are asked by the two areas of economics?

7. Do factors that are studied by macro- and microeconomics influence each other? In what way?