8.1

Question 1

What is Macroeconomics?

Answer 1

A branch of economics dealing with the performance, structure, behaviour, and decision-making of an economy as a whole.
This includes regional, national, and global economies.

Question 2

What is Microeconomics?

Answer 2

A branch of economics that studies the behaviour of individuals and firms in making decisions regarding the allocation of scarce resources and the interactions among these individuals firms.

Question 3

What is a recession?

Answer 3

A business cycle contraction when there is a general decline in economic activity.
Defined as ‘2 consecutive quarters of negative economic growth’.

Question 4

When do recessions occur?

Answer 4

They generally occur when there is a widespread drop in spending.

Question 5

What are consumers?

Answer 5

People who make use of goods and services.

Question 6

What are producers?

Answer 6

Individuals, organisations and businesses that provide goods and services.

Question 7

How does money circulate in the economy? (Flow diagram)

Answer 7

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