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Q. 1. What Is Economics, and Why Is It Important?

Q. 2. How Economists Use Theories and Models to Understand Economic Issues?

Q. 3 Decision-making is at the heart of economics. The individual must decide how much to save for retirement, how much to spend on different goods and services, how many hours a week to work. The firm must decide how much to produce, what kind of labor to hire. Society as a whole must decide how much to spend on national defense (“guns”) versus how much to spend on consumer goods (“butter”).

DISCUSS HOW PEOPLE MAKE DECISSIONS

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