Chapter 1 Definitions of Economics.

Question	Answer
What is economics? Image: Economics (image/jpeg)	Study of choice and decision making in a world with limited resources
Demand	Quantity of a good households are willing to buy in a market
Supply	Quantity of a good firms are prepared to sell in a market
Microeconomics Image: Microeconomics (image/jpeg)	examines choices and behaviour individual consumers, firms, and markets in the economy
Macroeconomics	examines the economy as a whole
Normative Statement	A value judgment and or opinion that cannot be scientifically tested. Based on ones values
Positive Statement	A statement that can be scientifically tested and possibly falsified
DEFRA as an acronym stands for?	Department for Environment, Food and Rural Affairs (DEFRA)
What do economists do?	- economist act as private consultant - central and local government

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