Module 1 The Study of Economics KRUGMANS MACROECONOMICS
- Slides: 8
Module 1 The Study of Economics KRUGMAN'S MACROECONOMICS for AP* Margaret Ray and David Anderson
What you will learn in this Module: • How scarcity and choice are central to the study of economics • The importance of opportunity cost in individual choice and decision making • The difference between positive economics and normative economics • When economists agree and why sometimes disagree • What makes macroeconomics different from microeconomics
Individual Choice: The Core of Economics • Individual choice • Economy • Market economy • Property rights • Marginal analysis
Resources Are Scarce • Resources (Factors of Production) • Land • Labor • Capital • Entrepreneurship • Scarcity and society • Examples
Opportunity Cost: The Real Cost of Something Is What You Must Give Up to Get It • Opportunity Cost • Why all costs are opportunity costs • Examples
Microeconomics Versus Macroeconomics • Microeconomics • Macroeconomics • Economic Aggregates • Microeconomic versus Macroeconomic questions
Positive Versus Normative Economics • Positive economics • Normative economics • Examples • Economic model
When and Why Economists Disagree • Economists may disagree because they have different values or opinions • Economists may disagree because they use different models or methods to conduct their analysis • Over time, disputes in economics are resolved by the accumulation of evidence (but this can sometimes take a long time!)
