SOCIAL SCIENCE - defined as the study or discipline that aims to explain human behavior and society.

It is a study of society or parts

of it that utilizes the scientific method of observation, hypothesis formulation, testing and experimentation.

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Macroeconomics

− It looks at the economy as a whole and examines the factors that determine national output or product.

− It looks at the big picture such as growth, employment, etc., and choices are made by large groups (like countries)

Microeconomics

− It deals with the functioning of individual industries and the behavior of individual economic decision-making units such as firms
and household. (It looks on how do individuals make economic decisions)

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Inputs - Refers to any resources used to create goods and services

Outputs - a good or services which has value and contributes to the utility of individuals

Allocation - The division and distribution of things into shares or portions

Production - the process of combining inputs to make something for consumption. It is the act of creating output

Consumption - the use of a good or service

Opportunity cost - the best alternative that people forego, or give up, when making a choice or decision. (Refers to the value of what
you have to give up in order to choose something else)

Economic Resources - labor, capital, land, and entrepreneurship that are used to produce goods and services also known as factors of
production

Scarcity - is a situation wherein the amount of something available is insufficient to satisfy the desire for it. (It means that the
demand for a good or service is greater than the availability of the good or service)

Choice - the ability of a consumer or producer to decide which good, service or resource to purchase or provide from a range of
possible options

Trade-offs - consist of all the options that we give up when we make a choice.

Economic Decision - Refers to the process of making choices about how to use resources in order to achieve the best possible
outcome.

Positive Economics - focuses on causes and effects, behavior relationships, and facts involved in the evolution and development of
economic theories. Often called “what is” economics

Normative Economics - expresses value or judgements about economic fairness or what the outcome of the economy ought to be.
Often called “what should be” economics.

Economic Theory - set of related statements about cause and effect.

Economic Model - a simplified version of reality that allows us to observe, understand, and make predictions about economic
behavior.

Applied economics is thus the study or economics relative to real-life situations. This is done by observing how theories work in
practice. Applied economics usually deals with numbers on which possible outcomes being reviewed are based and supported.

business firm - refers to an organization created for business purposes, one of which is to gain profit.

entrepreneur - someone who organizes, manages, and assumes the risks of a business or enterprise.