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Economics is a broad topic of study that covers many topics. Some of the key topics we cover in economics include;

  1. Microeconomics – This is a branch of economics that studies the behavior of businesses and individuals and the decisions they make in regard to the allocation of scarce resources. Microeconomics explains how our decisions and behaviors affect the supply and demand of limited resources, determining our prices. Microeconomics is a broad subtopic of microeconomics. Some of the topics covered under microeconomics are;
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    • Price ceiling and floors
  2. Macroeconomics – This study the overall economic performance, driving forces, and behavior. While microeconomics focuses on how people make decisions, macroeconomics covers the overall aggregate effect of microeconomics. Government uses macroeconomics to understand and predict the long-term effects of their decisions. Macroeconomics is made up of many branches, which include;
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    • Economic growth
    • Employment
    • Gross Domestic Product
    • Monetary policy
    • Inflation
    • Aggregate demand and supply
    • Business cycles
  3. International economics – This branch of economics deals with the interactions between different countries and the economic impact of the relationship. It covers political and economic issues related to international trade and finance. It involves the exchange of goods and services and other factors of production like capital and labor across the borders. It also covers the flow of financial assets and investments across borders. Some of the topics we cover under international economics include;
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  4. Financial economics – This branch of economics deals with the different financial markets, considering how resources are being used. It has a focus on monetary activities. Some of the topics covered under financial economics include;
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    • Risk and return
    • Saving and investing
    • Financial markets
    • Money management and budgeting

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