1.2

Question 1

Economics

Answer 1

economics is commonly described as the study of how societies allocate limited resoruces to satisfy needs and wants

Question 2

macroecomincs

Answer 2

Is the study of the entire economy and the larger flaws impacting all aspects of it. It focuses on aspects including national production, inflation, national unemployment and national spending.

Question 3

microeconomics

Answer 3

is the study of individual elements of the economy. This can include a particular organization, particular industry or a single market

Question 4

positive economics

Answer 4

Positive economics is based on hard evidence about what is actually the case. In other words, positive economic analysis often involves basic statements of fact such as, ‘If A occurs, then B is the result’. No values are involved.

Question 5

normative economics

Answer 5

statements that are based on opinion or value judgements