Basic Concept of Macro

*Scarcity-The condition that arises because wants exceed the ability of resources to satisfy them.
*Economics-The social science that studies the choices that individual, businesses governments, and the entire societies make as the cope with scarcity, the incentives that influence those choices, and the arrangements that unionize them.
*Rational choice-A choice that uses the available resources to crush achieve the accusive of the person make the choice.
*Opport building blocky cost-The opportunity cost of something is the best thing you must turn in up to get it.
* borderline cost-The opportunity cost that arises from a one unit add in an activity the marginal cost of something is what you must give up to get one additional unit of it.
* peripheral benefit-The benefit that arises from a one unit increase in an activity. The marginal benefit of something is measured by what you argon instinctive to give up getting one additional unit of it.

*Microeconomics-the sphere of the choices that individuals and the businesses make and the way these choices interact and are influenced by government. Also studies the economic behavior of individual agents: consumers, firms and specific markets.




*Macroeconomics-The study of economic behavior of aggregate agents: all the consumers firms and markets
Positive statements occupy to what it is they are derived with the use of the scientific method.
Normative statements refer to what it should b. They are based on value judgments and could be dissimilar for different people.
FACTORS OF PRODUCTIONS-INPUTS ARE RESOURCES USED TO PRODUCE GOODS AND SERVICES
-Land, (Rent) consist of any lifelike resource
-Labor, (Wage) is the skilled or unskilled human resource
-Capital, (Interest) tools machinery equipment, and buildings used to get up goods and service. Does not include financial capital or stocks bonds
Entrepreneurship, (profit or loss)-is the human ability to put together the other ternion resource
The simple circular flow



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