Intel Corporation and the Effects of Economics Economics is defined as the social science that studies the production, distribution, and consumption of goods and services. It primarily deals with the exchange of value and that human labor or effort is the source of all value. The field can be divided in other ways, most commonly between microeconomics and macroeconomics. Microeconomics examines the economic behavior of individual units, including businesses and households, and their interactions in markets, given scarcity and government regulation. Macroeconomics examines an economy as a whole "from the top down" with a view to understanding the interactions between broader aggregates such as national income and production, employment and inflation and broader aggregates such as consumption. total and capital expenditure. Econometrics is the application of statistical techniques to the measurement of economic phenomena. Scarcity suggests that all things in the world are in limited supply. So people have to make choices. The notion of value is central in economics. The objective value is the free market equilibrium price. Subjective value arises from the preferences of individuals and therefore influences the behavior of economic agents. In microeconomic theory, supply and demand attempt to describe, explain, and predict the price and quantity of goods sold in perfectly competitive markets. It is one of the most fundamental economic models and is used as a building block in a wide range of more detailed economic models and theories. Price is the prevailing rate of exchange between buyers and sellers in a market. Price theory traces the movement of measurable quantities over time and the relationship between price and other measurable variables. Porter's 5 Forces Analysis is a business management framework developed by Michael Porter in 1979. It uses concepts developed in industrial organization economics to derive 5 forces. which determine the attractiveness of a market. It is also known as FFF, the Five Forces of Fullerton. Porter called these forces the microenvironment, to compare it to the more general term macroenvironment. These are those forces close to a business that affect its ability to serve its customers and make a profit. A change in any of the forces normally forces a company to reevaluate the market. The first force is called the bargaining power of customers, the second is the bargaining power of suppliers, the third is the threat of new entrants, the fourth is the threat of substitute products, all these in which influence the fifth force, the level of competition in an industry.