Economics 1.

1
Economics is a social studies because it's studies about human physical behavior when
taking econamical decisions

Needs can divide into 2 types

Physical needs mental needs

We can satisfy physical need by consuming goods and services

We can't satisfy mental need by consuming goods and services
Every economy theories are based on scientific method so we can show the
differences between the natural science and the econamy

Economics. Natural science

Economic behaviour ................

is examine by economics
Economic theory cannot. ....................

be proved in laboratory

Economic is sensitive for factors. ..........

such as time region social

environment

So, studies that studies the relationship between the scare resources with alternative uses and
human unlimited wants is known as economics
There are some important in order to study economics
1. To take rational consumption decision
2. Take rational production decision
3. To understand the current economic behaviours
4. To predict the future economic behaviours
5. What for intelligent

Economic is dividing into two types as micro economics and macro economics
 Studies of unit of economy such as sectors institutes and its variables its known as
microeconomic
Below are some example for microeconomics
1. Production function of a firm
2. Production cost of a film
3. Marginal cost
4. Import export rate of tea industry

Aggregate function of economy is studied in macroeconomics

The word aggregate function is sum of all each small sector of econamy
So here some examples for macro economics
1. Aggregate incom level
2. Aggregate output level
3. Investment
4. Employment level
5. Unemployment level
6. Import and export

In in economics there are two statement such as positive and normative statements
Positive statements mean what is what was what what will be
Below are some characteristics of positive statement
1. Positive statement can be verified
2. Positive statements are practical thing
3. Positive statesmans are objective
4. Positive statement can be tested in real world
5. Positive statement can either correct or nots

Example for positive statement

Positive relationship exists between money supply and the price level.
Negative relationship exists between price and the quantity demand.
Sri Lanka’s unemployment level in 2013 was 44

other hand normative statement is about what should be and what should not be

This all about personal view, beliefs, tradition

These statement cannot be judge with its correct or not
It cannot be tested in real world as well

Questions time

Sure, here are some example questions based on the learning outcomes you provided:
1. How does the study of economic behavior confirm economics as a social science?

2. Why is it important for individuals to learn about economics in today's society?

3. Can you provide an example of a microeconomic concept and how it differs from a macroeconomic
concept?

4. Explain the difference between microeconomics and macroeconomics using the example of supply
and demand in a specific market versus the overall unemployment rate in a country.

5. What distinguishes positive statements from normative statements in economics? Provide an

example of each.

6. How do positive statements contribute to objective analysis in economics?

7. Can you give an example of a normative statement commonly debated in economic policy
discussions?