Unit 1- Basic Concepts of Economics
     Macroeconomics is the part of economics concerned with large-scale or general economic factors, such as interest rates and national productivity. For example, inflation, wage laws, and international trade are all parts of macroeconomics because it deals with the entire economy unlike microeconomics, which is the study of how households and firms make decisions and how they interact in market through supply and demand and market structure.
     Economics can also be categorized by either positive or normative. Positive economics is the part of economics that attempts to describe the world as it is. It is said to be descriptive. For example, minimum wage cause unemployment. Normative economics on the other hand is the study of how the world should be. It is prescriptive. For example, the government should raise minimum wage.
     In economics, there are two important factors called a need and a want. Needs are basic requirements for survival like clothing, food, and water. A want is simply a desire. For example, technology.
     In a society, two situations have a possibility of occurring.  They are called scarcity and shortage. Scarcity is the most fundamental problem facing all societies. An example of this is gas. Shortage is the opposite of scarcity. It is a situation in which the quantity demanded is greater than supplied. For example, if a corner store runs out of blue Gatorades, that is a shortage.
     Two things that help an economy go round are goods and services. Goods are tangible commodities. Two types of goods are capital and consumer.  Capital goods are items used in the creation of other goods. For example, a machine. Consumer goods are goods intended for final use by consumers. For example, food. A service is a work performed for someone else.