What is economics & what do economists do

  • Created by: Ritika
  • Created on: 17-01-15 13:41

Microeconomics & Macroeconomics

Microeconomics:  Is concerned with economic behaviour in the individual markets that make up the economy. Micro investigates the individual consumers, firms, markets and industries.

 Macroeconomics: attempts to explain how the whole economy works. Examines the aggregate level of output, income, prices, employment and unemployment and the trade flows that make up the balance of payments.

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Positive and Normative

Positive statements: this is a statement of fact, or one that can be scientifically tested. This type of statement does not have to be true but it should be testable.

Normative statements: this is an opinion that cannot be scientifically tested. Normative economics is about value judgements and opinions.  

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