Macroeconomic vs Microeconomics

Macroeconomic: study of entire economy, which covers the ups and down of the economy.

Microeconomics: study of the part of economy,small impacting organizations in making decisions on the allocation of limited resource.

 Positive Economics Vs Normative Economic

Positive Economics (facts):  claims that attempts to describe the world as is. It is very descriptive.
Ex.min wage laws causes unemployment 

Normative Economics (opinion): claims that attempts to prescribe how the world should be. It is very prescripts in nature. & is opinion based.
Ex. Gov should raise the minim Wage. 

Need VS wants  

Needs: are basic requirements for survivals. 

 Wants: are desires of citizens & are broader than your needs. 

Scarcity vs Shortage 

Scarcity: is the most fundamental economic problem facing all society. It is satisfying unlimited wants with limited resources. 
 

Shortage: is a situation that we have that quantity demanded is greater than quality supplied. 

Goods vs Services

consumer goods: goods that are intended for final use by the consumer.

Capital goods:item uses in the creation of other goods.

Services: Work that is perform for someone else.