Introduction to Economics & Politic

What is economics?

Economics is a social science that studies the production, distribution and consumption of goods and services

What is politics?

Politics is about making decisions about running a country, including making laws, choosing leaders and deciding how to spend money

How are economics and politics connected?

Governments make political decisions that affect the economy, such as setting taxes and deciding how much money to spend on schools or hospitals

What is macroeconomics?

The study of the economy as a whole, including growth, unemployment and inflation

What is microeconomics?

The study of individual decisions, such as how a family spends money or how a business sets prices

What does GDP measure?

The total amount of money a country makes by selling goods and services

What is inflation?

The rate at which the cost of goods and services increases over time

What can inflation mean for people?

If things cost more, people may struggle to afford basic needs

What is the unemployment rate?

The increase in the amount of people who are unemployed in a year