unit 1 aos 1

• Microeconomics

  observes the factors that influence smaller stakeholders in Australian economy, decisions made by individual consumers or firms (e.g single market)
• Macroeconomics


  the whole economy of a nation and the larger flows that affects the overall economic conditions, generally involves looking at:

  • nation spending and production (GDP)
  • national incomes and unemployment
  • national inflation rates
• Positive 


  method of analysis that can be proven or disproven, often these are issues that are investigated and can be verifiable through facts, figures and statistics
• Normative


  statements that are often involve personal opinion , bias and is subjective (e.g the Australian government should increase funding for childcare)
• relative scarcity


  unlimited wants and needs often exceed their limited resources, a need is defined as something that is essential for survival and a want is defined as something that is not essential for survival