ACC 202 Lecture Notes - Lecture 3: Opportunity Cost, Macroeconomics, Price Floor
Document Summary
Important concepts from the first part of the course. Introductory concepts: economics is the study of how society chooses to use its scarce resources. However, in this course, we will focus on microeconomics, which deals with the behavior of the individual decision-making units in the economy, such as households and business firms. In microeconomics, we concentrate on the ways in which these individual decision-making units make their decisions, and how they interact with each other. Note that the macroeconomic aggregates are made up on microeconomic pieces. Thus macroeconomics rests on a microeconomic foundation: positive statements deal with what is, i. e. , positive statements are associated with the actual workings of the economy. In principle, at least, a positive statement can be shown to be true or false. On the other hand, normative statements deal with what ought to be. Thus, normative statements are based on value judgments.
