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Fred E. Foldvary, an economist, stated that, “Economics is a social science, dealing with the activities of people, and it specializes in the production, distribution, exchange, and consumption of wealth, or the material needs and desires of human beings”. The science of economics composes of two distinct areas, which are microeconomics and macroeconomics. Microeconomics studies how households, individuals and firms make decision regarding the allocation of limited resources and price of goods and services. That is to say, microeconomics focuses on supply and demand, and how people take interaction in various markets...
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