- Macroeconomics- the study of major components of the economy. Examples: inflation,supply and demand wages
- Microeconomics- study of households and firms make decisions and how they interact with the market, basically what type of business is being had.
- Positive Economics- describing the world as is. ex: Minimum wage loss causes unemployment.
- Normative Economics- claims that attempt to predict how the world should be/ opinion based.
- Needs- basic requirements for survival.
- Wants- desires.
- Scarcity- limited or not enough.
- Shortage- quantity demanded is greater than quantity supply.
- Goods- tangible, sold, traded, bought, produced. -consumer goods: goods that are intended for final use. ex: candy. -Capital goods: items used for creation of other goods. ex: machinery, factories, trucks.
- Services- work performed for someone else.
- Factors of Production- Land: natural resources. Labor: work forces. Capital: human capital, physical capital. HC: knowledge and skills a worker gains through experience. PC:human made products to produce other goods. Entrepreneurship: starting own business.
- Trade offs- alternatives given up when we choose one course of action over another.
- Opportunity cost- choosing our next best alternative.
- Production Possibility Curve- shows the most society can produce if uses every available source to best of its ability.
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| E- Technological improvement, economic growth, discovering new resources. D- Decrease in population, underemployment, unemployment, war/famine.
*you can use the following link as a guide through the entire unit*
https://www.youtube.com/playlist?list=PL275E49435929D711
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