ECONOMICS:

Economics is a social science that deals with the study

of production, consumption and distribution of wealth.
Economics can also be defined as the study of
allocation of scarce resources. It is divided into two
branches which are defined below.

Microeconomics:
Microeconomics deals with individual units of an
economy, such as individual consumers, individual
firms and small groups of industries and markets etc.

Macroeconomics:
Macroeconomics is the study of economy in total or
general economic factors such as interest rates and
national productivity.

SCARCITY:
The limitation of resources is called scarcity. Scarcity is
a common feature among all the societies.
CHOICE:
Choices are rational decisions taken by economists
due to scarcity.

OPPORTUNITY COST:
The opportunity cost of an item is what you give up to
get that item.

POSITIVE STATEMENTS:
Positive statements are objective and are based on
facts. They can be tested and proven. For e.g. Higher
interest rates will reduce house prices.

NORMATIVE STATEMENTS:
Normative statements are subjective and opinion-
based. They cannot be tested or proven. For e.g.
Unemployment is more harmful than inflation.

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MARKET:
A market is an arrangement where buyers and sellers
interact to facilitate the exchange of goods and
services.

FACTORS OF PRODUCTION
Land includes all the nat

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