Economics

Economics

-is a science which studies how do people alocate limited (scarce) resouces in order to satisfy their unlimited wants

scarcity – lack of available rosources to satisfy all desired uses of those resourcess
oportunity cost – the cost of a choice stated in terms of the value of othe goods and services that must be given up
We can devide economics in more ways, for example:

Positive economics: It seeks objective explanations of the working of an economy
Normative economics: it is based on personal value judgements, it tells what should economy look like
Macroeconomics: studies and explains economy as whole
Microeconomics: examines individual decisions and particular markets