Microeconomics vs Macroeconomics

These flashcards cover key vocabulary terms and concepts in microeconomics and macroeconomics, as discussed in the lecture.

Microeconomics

The study of how households and firms make decisions and interact in specific markets.

Macroeconomics

The branch of economics that deals with the economy as a whole, including national income, overall level of prices, and resource allocation.

Positive Economics

The analysis of facts and development of theories that describe the economic reality without judgment.

Normative Economics

The evaluation of economic outcomes and the judgments about what ought to be, based on individual values.

Scarcity

A situation where resources are limited in comparison to the wants and needs they must satisfy.

Production Possibility Frontier (PPF)

A curve that shows the maximum feasible quantity of one good for a given quantity of another good, illustrating choice and trade-offs between two goods.

Price Determination

The process through which the prices of goods and services are established in a market.

Price Legislation

Measures taken by the government to control the prices charged for goods and services in the economy.

Resource Allocation

The process of distributing available resources to various uses or sectors of the economy.

Capital Resources

Assets used in the production of goods and services, such as machinery and tools.