Jan 3, 2017

Macroeconomics is a study of the economy as a whole "the big picture"

VS

Microeconomics is the study of individual or specific unit of the economy decisions that household make and how they interact in the market


Postive Economics

• Claims - an attempt to describe world as is
• descriptive in nature
• based in facts              

                  VS

Normative Economics 

• Claims - that attempt to prescribe how the world should be 
• Option based   

Needs is basic requirements for suvrival     VS  Wants (Desire) 

Scarcity Fundamental 

economic problem all society face "how to satisfy unlimited wants with limited  resources."

VS

Shortage 

Quantity demand is greater than quantity supply QD>QS

Goods
Tangible condiments (touch, hold) sold bought, traded, produce
consumer good- goods that are intended for final use 

capital goods- items used in the creation of other goals
                                      VS
Services 
work is that performed for someone  example: concert, barbershop