What is Macroeconomic?
It is the study of major components of the economy (i.e. inflation, supply and demand, wages, GDP,...) - the very basic info that will come in handy once you have to deal with money and financial matters!
There are some vocab that you will need to know and understand
Positive Economic: It is claim to be very descriptive and based on facts alone.
Normative Economic: It attempts to prescribe how the world should be and is based on opinion.
Needs and Wants: The words explain it all. Need is the basic requirements for survival (i.e. food, shelter, water,...) In other hand, wants are the things that we desire and aren't necessarily needed (i.e. iPod, video games,...)
Scarcity and Shortage
Scarcity is a fundamental economic problem that all society face, because it's trying to satisfying unlimited want with limited resources.
Shortage is a situation where quantity demanded is greater than quantity supplied.
-For example: your parents are in a budget and aren't able to buy, say, pork for meal as your family usually do; so your family have to live on ramen noodles for a week before the pay check.
Goods: tangible, can be bought, sold. traded and can be produced
Services: the work that is performed for someone else
Consumer goods and Capital goods
Consumer goods: goods that are intended for final use by consumer (i.e. box of cereal)
Capital goods: items that are used in the creation of other goods, factory machinery (i.e. boxes to store cereal)
Factors of Production
There are 4 factors of production
-Land: natural resources
-Labor: work force
-Capital: +Human capital: knowledge and skill a worker gain through education & experience
+Physical capital: human made objects used to create other goods & services
-Entrepreneurship
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