What Two Broad Subfields Is the Field of Economics Traditionally

question 84

Multiple Choice

What two broad subfields is the field of economics traditionally divided into?

• A) national economics and international economics
• B) consumer economics and producer economics
• C) private sector economics and public sector economics
• D) microeconomics and macroeconomics

Understand the concept of market equilibrium and how it is represented graphically.

Recognize the factors that can lead to shifts in market demand and supply.

Analyze the short-run and long-run effects of changes in demand and supply on market equilibrium.

Identify the conditions for long-run equilibrium in competitive markets.

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Definitions:

Required Return

The minimum expected return on an investment necessary to compensate for the risk taken by the investor, including the time value of money and inflation.

Payback

A method of investment appraisal that calculates the time needed for an investment to generate cash flows sufficient to recover the initial outlay.

Four Year Payback

A capital budgeting method that calculates the time required to recoup the initial investment in a project, specifically over a period of four years.