- 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.
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.