Lecture 2 chapter 2: the market system and circular flow. News articles: gold demand falls in 2012 for the first time in 3 years. Micro and macro, since it is specific for gold but it is talking about it over time through the years: toronto housing market on track to be hottest in canada for 2014. Micro and macro, since it deals with a specific market but also deals with all of. Positive/normative: positive statements are about what is. Can be tested by comparing it to facts: normative statements are about what should be. The price of gas has risen this year more than last year. The government should regulate the price of gasoline normative. Fallacy of composition: the statement that what is true of the parts is true of the whole or what is true of the whole is true of the parts, individual vs. group behaviour.