Economics is the study of how people and society choose to employ scare resources that could...

 

 

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Economics is the study of how people and society choose to employ scare resources that could have alternative use in order to produce various commodities and to distribute them for consumption purpose. In Oman economy, producer consider the aggregate demand of all consumers before producing any good and service. Similarly, each consumer manages his/her income for consumption and saving. Firms produce output and they use factors of production. Government control the functioning of the economy and analysis of Oman's economy is made at two levels that are Micro level and Macro level. Price of products in Oman is determined at the equilibrium price level and producer make decision based on the cost of production. Additionally, Exchange rate of Omani Rial is also determined with the interference of government and central bank of Oman but changes in exchange rate are also observed with time. Oman's economic system also faces Economic Problems such as growth and production method. a. Differentiate between two branches of Economics mentioned in above case. b. Identify examples of microeconomics and macroeconomics from this case study. c. What are the economic problems that Oman economy has to face? d. What is the difference between economy and economics? e. Write at least 2 examples of goods and services? Economics is the study of how people and society choose to employ scare resources that could have alternative use in order to produce various commodities and to distribute them for consumption purpose. In Oman economy, producer consider the aggregate demand of all consumers before producing any good and service. Similarly, each consumer manages his/her income for consumption and saving. Firms produce output and they use factors of production. Government control the functioning of the economy and analysis of Oman's economy is made at two levels that are Micro level and Macro level. Price of products in Oman is determined at the equilibrium price level and producer make decision based on the cost of production. Additionally, Exchange rate of Omani Rial is also determined with the interference of government and central bank of Oman but changes in exchange rate are also observed with time. Oman's economic system also faces Economic Problems such as growth and production method. a. Differentiate between two branches of Economics mentioned in above case. b. Identify examples of microeconomics and macroeconomics from this case study. c. What are the economic problems that Oman economy has to face? d. What is the difference between economy and economics? e. Write at least 2 examples of goods and services?

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Solution Ans a The two branches of Economics are Macroeconomics and Macroeconomics Microeconomics In Microeconomics the behaviour of individual units ... View the full answer