Basic Concepts of Economics(1/3)
1.Macroeconomics vs. Microeconomics
- Macroeconomics is the study of economics as a whole (inflation, debt)
- Microeconomics is the study of individual/specific units of the economy (household & firms interactions in the market)
2.Positive vs. Normative Economics
- Positive Economics - Descriptive economics, collects & presents facts, attempts to describe the world as is.
- Normative Economics - Prescriptive economics, opinion-based, attempts to prescribe how the world should be.
3.Needs, or basic requirements for survival, vs. Wants, or desires
4.Scarcity vs. Shortage
- Scarcity - Permanent, most fundamental economic problem plaguing all societies
- Shortage - Temporary, Quantity Demanded (QD) > Quantity Supply (QS).
5.Goods vs. Services
- Goods -Tangible commodities (bought, sold, traded, produced)
- Capital Goods - items used in the creation of other goods
- Consumer Goods - intended for final use by consumer
- Services - Work performed for someone
Your blog was fantastic but I could not comprehend what was on some of your pictures such as your points on the PPC. The words were difficult to depict, perhaps you can find better quality pictures.
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