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microeconomics
concerned with individual markets, consumer and producer behaviours, government choices
macroeconomics
concerned with the economy as a whole, economic aggregates like national income and output, inflation, growth, unemployment
positive statement
factual, can be tested
normative statement
expresses an opinion or value judgement, cannot be tested
positive economics
formulating and testing of economic theories, using analysis to make inquiry
normative economics
study of human behaviours, opinions, value judgement interjected into the analysis
why does scarcity occur?
human wants are unlimited, while the resources available to satisfy those wants are limited
what are the factors of production (relating to scarcity)?
capital — man-made resources used for further production (office buildings, machinery)
enterprise — human resources who take risks and innovate
land — natural resources (constrained by geographical size and accessibility)
labour — human effort of someone willing and able to work
what is opportunity cost?
the value of the next best alternative forgone when an option is chosen
what is opportunity cost like at a consumer level?
consumers have limited income but unlimited desires to fulfil, they need to decide how much to spend and save while also buying goods and services
what is opportunity cost like for producers?
aim to maximise their profits, deciding the types of goods and services to produce with limited resources
what is opportunity cost at a governmental level?
aim to maximise welfare, cannot fulfil all of citizens’ desires with limited economic resources like the government budget
Note 
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