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Economics IGCSEPDF 19
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and
. [4]
These agents make choices that impact the entire economy.
Organisations like the World Bank or IMF that make decisions affecting multiple
Typical Microeconomic Decisions:Intervening in a specific market (e.g., setting a tax on
cigarettes or a maximum price for rent)
market outcome.
ANS- Microeconomics is the study of individual economic units or markets (e.g., a single
firm, a household, or the market for one good). It focuses on small-scale decisions and how
resources are allocated in specific areas. Macroeconomics is the study of the
(the national or global economy)
Q.2- Identify the key decision makers (economic agents) involved in microeconomics and
describe one decision each makes. [4]
ANS-
-Households/Consumers: They decide what to buy (consumption) and
borrow.
Decision Maker : Government /Treasury
Typical Macroeconomic Decisions : Implementing Fiscal Policy (decisions on overall taxation
levels and government spending) to influence national demand and growth.
Decision Maker : Central Bank
Typical Macroeconomic Decisions : Implementing Monetary Policy (setting interest rates and
controlling the money supply) to manage inflation and stimulate/dampen economic activity.
Decision Maker : International Bodies
Typical Macroeconomic Decisions : Organisations like the World Bank or IMF that make
decisions affecting multiple national economies.
Macroeconomic Decision Makers
PAST-PAPER QUESTIONS
Q.1- Define the terms microeconomics
macroeconomics
wholeeconomy
howmuchtosaveor