Question

apply economic concepts to the real world

Answer 1

Economics is a vast subject .

It includes micro and macro economics .

microeconomics deals in the smaller level or firm level or individual.

macroeconomics deals in the larger perspective say for example it is used for calculating like employment rate ,standard of living ,GDP etc .

so many cocept can be applied in Real life like opportunity cost ,law of demand , law of supply etc.

For example as we all know according to law of demand if other things held constant then price and quantity demanded are inversely related.

so in real market if say if rice of a commodity Rises it causes fall in quantity demanded of that commodity .

examples of opportunity cost talks about the opportunity of gaining one option in losing other option .

say for example if a person at a time can decide he can go fora party or to study ,which is the next best choice he we will go for