Exam

• Economics is the use or allocation of scarce resources to meet men's unlimited needs and wants–Ritchard Lipsey.
• Scarcity is the insufficiency or inadequacy of economic resources and as a result we have to decide or choose.
• Trade off is the exchange or choosing between alternatives, it is the reality of life that getting one thing world, mean giving up another thing.
• Opportunity cost is the value or cost of the next best forgone choice/alternatives.
• Positive economics describes and explains various economic phenomena or what is scenario.
• Positive economics is based on facts.
• Public healthcare increase government expenditures.
• Normative economics focuses on the value of economic fairness or what the economy “should be” in other words, normative economics is based on value judgement.
• Best healthcare must be free to all citizens.
• Microeconomics is a close up view of the economy, studying individual, and business decisions.
• Microeconomics is also called buttom up approach that forces on supply and demand and other forces that determine price level.
• Macroeconomics is the overall view of the economy looking at the decisions of countries and government.
• Macroeconomics takes the Top-down approach that tries to determine the course of economy as a whole.
• Macroeconomics focuses on the aggregate supply and demand.