ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Understanding economics helps consumers and producers use their resources effectively. Macroeconomics studies how individuals make decisions about what to produce and what to consume. Consumers will pay more for a product if the supply of that product increases.

Detailed explanation-2: -A producer is someone who creates and supplies goods or services. Producers combine labor and capital-called factor inputs-to create-that is, to output-something else. Business firms are the main examples of producers and are usually what economists have in mind when talking about producers.

Detailed explanation-3: -Microeconomics studies the decisions of individuals and firms to allocate resources of production, exchange, and consumption.

Detailed explanation-4: -which describes the economic role of a consumer? buys goods & services. which helps producers figure out what consumers want? market research.

Detailed explanation-5: -Market research tells producers what consumers want and what they’re willing to pay. Market research lets producers predict what laws the government is planning to make.