1 Briefly explain the three distinct components of economics - Economics - Introduction

Question

1 Briefly explain the three distinct components of economics

S M · Accepted Answer

THREE DISTINCT COMPONENTS OF ECONOMICS
CONSUMPTION - We want to know how the consumerr
decides, given his income and many alternative goods to choose
from, what to buy when he knows the prices This is the study of of
consumption
PRODUCTION - We also want to know how the
producer, similarly, chooses what to produce for the market when he
knows the costs and prices This is the study of production
DISTRIBUTION - Finally, we want to know how the
national income or the total income arising from what has been
produced in the country (called GDP) is distributed through wages
(and salaries), profits and interest This is the study of
distribution
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1. Briefly explain the three distinct components of economics.