Macroeconomics- The study of the entire economy which covers the ups and downs of the economy.
-Ex: GDP, Inflation, Unemployment
Microeconomics- It is the study of parts of the economy in which people make decisions and how those decisions interact, basically a small segment.
-Ex: Supply and demand, Market Structure.
Positive Economics- It describes the way that the economy actually works.
-Ex: Minimum wage laws cause unemployment.
Normative Economy- It describes the way the economy should work.
-Ex: The price of gasoline is too high!
Needs- Basic requirements for survival.
Wants- Desires of citizens
*P.S. These are the notes we took in class yesterday.
*P.S. These are the notes we took in class yesterday.
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