5 January 2016

Macroeconomics: It is the study of the economy as a hole.

• International trade
• wage laws
• inflation

Microeconomics: It is the study of individual or specific unit of the economy.

• supply and demand
• market structure
• business organization

Positive economics: It attempt to describle the world as it is.

• it is very descriptive 
• it collect and present fact 
• is consider as ''what is''.

Normative economics: Attempt to prescribe how the world should be.

• it is very descriptive
• opinion

Needs: Basie requirement to survived.

• Food
• H2O (water)
• Shelter
• Clothing

Want: Desires of citizens

Goods: Tangible commodities

1. Capital goods: item used in the creation of order goods.
2. Consumer goods: goods that are intended for final use by the consumer.

Services: Work that is perform for someone.

Scarcity: The most fundamentals economics problem that all society face.

• How to satisfy unlimited wan with limited sources

Shortage: Is a state where quantity demand is greater than quantity supplies.

Factors of production

1. Land: Natural resources
2. Labor: Work source
3. Capital: (A)Human Capital (B)physical Capital
4. Entrepreneurship: (A)Innovation (B)Risk taker