Economics Exam Notes: Core Concepts

Introduction to Economics

• Macroeconomics vs. Microeconomics

  • Macroeconomics studies the economy as a whole, focusing on issues such as GDP, inflation, and unemployment.

  • Microeconomics studies individual agents' decisions, such as households and firms, and their interactions in markets.

• Positive vs. Normative Questions

  • Positive questions are objective and fact-based, addressing