Unit 1

                                         Macroeconomics vs. Microeconomics

Macroeconomics: The study of the economy as a whole.
                            - Inflation
                            - International Trade
                            - Wages

Microeconomics: The study of individual or specific units of the economy.
                            - Supply and Demand
                            - Market Structure
                            - Business Organization

                                      Positive Economics vs. Normative Economics

Positive Economics: Attempt to describe the world as is. Very descriptive. Thrives on the what-ifs.
                                - Collects present facts.

Normative Economics: Attempt to prescribe how the world should be.
                                - Opinion based

                                                                 Needs vs. Wants

Needs: Basic requirement for survival.
          - Includes food, water, shelter and clothing.

Wants: Desire of citizens

                                                                Goods vs. Services

Goods: Tangible goods
           - Capital Goods: Items used in the creation of other goods.
           - Consumer Goods: Goods intended for final use by the consumer.

Services: Work that is performed for someone.

                                                             Scarcity vs. Shortage

Scarcity: Most fundamental economic problem that all societies face. It is hoe to satisfy unlimited wants with limited resources.

Shortage: Where quantity demanded is greater than quantity supplies

                                                         4 Factors of Production

- Land: Natural Resources
- Labor: Work force
- Capital: Human resources, physical resources
- Entrepreneurship: Innovative, risk takers