Mirco Economics
...Positive economics or a positive statement is an objective statement or fact. Positive statements can be proved or disproved by comparing them with the facts. For example, ‘Barcelona won the UEFA champions league in 2006, beating Arsenal.’ This is a fact.
Normative Economics
Normative economics or a normative statement involves an opinion or a valid judgment. Normative issues can be debated but they can never be settled by science or by an appeal to facts. For example, The South African cricket team (the proteas) should win the cricket world cup and bring the trophy home.
A statement which includes words such as, ‘should, ‘ought’ and ‘must’ are all normative statements. But not all normative statements contain these words.
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Micro economics
In micro economics the focus is on individual parts of the economy. In micro economics the decisions made by individual consumers, households, firms or other organizations and are considered in isolation from the rest of the economy. The individual elements of the economy are each examined in detail. For example, the decisions of individual households (what to buy, what to do etc.). And of individual firms (what goods to produce, how to produce them and what prices to charge). It also includes the study of supply, demand and prices of individual goods and services, like petrol, maize, haircuts and medical services.
Macro economics
Macro economics is concerned with economy as a whole. Macro economics focuses on the ‘big picture’. An overall view is developed of the economic system and we study total or aggregate economic behaviour. Total production, income and expenditure, economics growth, aggregate unemployment, the general price level, inflation and the balance of payment are the main topics in macro...
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