Macroeconomics vs Microeconomics
Macroeconomics: it is the study of the economy as a whole (looking at the bigger picture) ex: minimum wage, world trade
Microeconomics: it is the study of individual or specific units of the economy (how households and firms make decisions and how they interact in markets) analogy: looking at trees but not the forest.
Positive economics vs Normative economics
Positive economics: it is an attempt to describe the world as is. (very descriptive and collects and presents facts)
Normative economics: it attempts to prescribe how the world should be (opinion based).
Needs vs Wants
Needs: basic requirements for survival
Needs: basic requirements for survival
Wants: desires
Scarcity vs Shortage
Scarcity: most fundamental economic problem facing all societies. (unlimited wants with limited resources) (permanent)
Shortage: quantity demanded exceeds quantity supplied (temporary)
Goods vs Services
Goods: tangible commodities (can be bought, sold, traded, and produced)
- Capital goods: items that are used in the creation of other goods
- Consumer goods: are intended for final use by the consumer
Here's a simple video on Macroeconomics vs Microeconomics:
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