Macroeconomics vs. Microeconomics
Macroeconomics- Study of the economy as a whole
Microeconomics- Study of individual or specific units of the economy
Positive vs. Normative Economics
Positive Economics- Claims that attempt to describe the world as is (fact)
Ex: Minimum wage laws cause unemployment.
Normative Economics- Claims that attempt to describe how the world should be (opinion)
Ex: The government should raise the minimum wage.
Wants vs. Needs
Wants- Desires of citizens and are optional
Needs- Necessities and required for survival
Scarcity vs. Shortage
Scarcity- Most fundamental economic problem that all societies face. How to satisfy unlimited wants with limited resources (Long term)
Shortage- Quantity demand exceeds quantity supplied (Temporary)
Goods vs. Services
Goods- Tangible item
-Consumer goods- Goods that are intended for final use by consumer
-Capital goods- Items used in the creation of other goods
Services- Action performed by one person for another
Factors of Production
1. Land
-Natural Resources
2. Labor
-Workforce
3. Capital
-Human Capital- Knowledge and skills a worker gains through education and experience
-Physical Capital- Human made objects used to create other goods and services
4. Entrepreneurship
-Inventive and a risk taker.
Opportunity Costs and Trade Offs
Opportunity Costs- The most desirable alternative given when making a decision.
Trade Off- Alternative decision people make when having an economic dilemna
Microeconomics- Study of individual or specific units of the economy
Positive vs. Normative Economics
Positive Economics- Claims that attempt to describe the world as is (fact)
Ex: Minimum wage laws cause unemployment.
Normative Economics- Claims that attempt to describe how the world should be (opinion)
Ex: The government should raise the minimum wage.
Wants vs. Needs
Wants- Desires of citizens and are optional
Needs- Necessities and required for survival
Scarcity vs. Shortage
Scarcity- Most fundamental economic problem that all societies face. How to satisfy unlimited wants with limited resources (Long term)
Shortage- Quantity demand exceeds quantity supplied (Temporary)
Goods vs. Services
Goods- Tangible item
-Consumer goods- Goods that are intended for final use by consumer
-Capital goods- Items used in the creation of other goods
Services- Action performed by one person for another
Factors of Production
1. Land
-Natural Resources
2. Labor
-Workforce
3. Capital
-Human Capital- Knowledge and skills a worker gains through education and experience
-Physical Capital- Human made objects used to create other goods and services
4. Entrepreneurship
-Inventive and a risk taker.
Opportunity Costs and Trade Offs
Opportunity Costs- The most desirable alternative given when making a decision.
Trade Off- Alternative decision people make when having an economic dilemna
your blog is full of information, but you might need to include some visual representation for your blog, if not it might look a little bland.
ReplyDeleteI took your feedback and have included some visuals in my blog. Thank you for pointing out something that was missing.
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