Introduction to micro economics( Micro and Micro economics and Positive and Normative Economics)

Date : 9.05.2020 
Sub  : Economics
Day  : 5
Time : 8:20am - 9am
Period : 2
Class    : 11

Learning Objectives

• Meaning of Micro and Macro  Economics
• Difference between Micro and Macro Economics
• Meaning of Positive and Normative Economics
• Difference between Positive and Normative Economic.

A very good morning students

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We now shift our focus to the second part of the chapter.

For today's class i will be introducing what is  Micreo and Macro Economics 

We will be learning what is Positive and Normative Economics

Let us begin

Micro Economics is that part of economic theory , wwhich studies the behaviour of an individual unit of an economy.
Example - Individual income, individual output, Price of a commodity. Its main tools are Demand and supply( you will understand this better in the video link given below.)


Macro Economics is that part of economic theory which studies the behaviour of aggregates of the economy as a whole. 
Example -National Income, Aggregate output, Aggregate consumption.( Here aggregate means the sum total ) Its main tools are Aggregate Demand and Aggregate Supply

Positive Economics deals with what are the economic problems and how they are actually solved.
Example- India is an overpopulated country, OR Prices are constantly rising.
Positive statements describe 'what was', 'what is', or 'what will be' under the given state of circumstances.These statements do not pass any value judgements.
Positive statements can be verified as true or false by comparing with actual data.( Example- China is the most Populated country in the world.This statement can be verified with data)


Normative Economics tells us 'what ought to be'.
Normative Economics deals with what ought to be or how the economic problems should be solved.
Example - India should not be an overpopulated country OR Prices should not rise.
Normative Economics passes a value judgement.

Please go through the video link given below to understand the topics taught to you today better

https://www.youtube.com/watch?v=54z4yfjFDzA


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