L1: Welcome to the world of ECO

Question 1

What is Economics

Answer 1

The study of human behavior - is about looking at the way individuals, families, and businesses make decisions or choices about how to use their limited resources in ways that best help to satisfy their basic needs and unlimited wants.

Question 2

What are the two main branches of Economics

Answer 2

Microeconomics and Macroeconomics

Question 3

What is Microeconomics?

Answer 3

The study of the economic behavior of individual consumers as well as business
IE: - operations of a particular firm
- the nature of a single industry

Question 4

What is Macroeconomics

Answer 4

The Study of the economy as a whole
IE: - Total value of national spending
- Levels of unemployment
- Rate of inflation

Question 5

Definition of an economy

Answer 5

A place where scarce resources are allocated among competing uses and goods/services are bought and sold

Question 6

Positive VS Normative Economics

Answer 6

Positive economics is:
-Fact-based economic statements
-Can be verified and tested to be T or F

Whereas normative economics are:
-Opinion of value judgment of statements or claims
-subjective in nature and can not be verified or tested as T or F