Today we will discuss the concept of opportunity cost with the help of examples.
The concept of opportunity cost was developed by Austrian school of economics. Later on it was popularized by American economist Devenport. Continue reading “Concept of Opportunity cost”
Last time we have discussed the types of economics. Today we will discuss the difference between positive economics and normative economics. Let us discuss it:
It deals with the economic issues of past, present and future and tells about what was, what is, what would be. Positive economics is basically based on the facts and figures which can be verifiable.
For example India is the second largest populated country; it is a positive statement nobody can deny it as it is based on the facts and figures.
It deals with the opinions of economists related to the economic issues and tells about what ought to be. Normative economics is basically based on the opinions which can’t be verifiable. For example there should be the development industries in underdeveloped countries to make them developing countries. So this statement is just an opinion and it is just a judgment.
I hope you have understood the difference between positive economics and normative economics.
The term economics is very common and Economics can be broadly classified into two parts:
MICRO ECONOMICS: in microeconomics we study “I” which means individual. It means in micro economics we study everything from the point of view of individual. The word micro itself means small. In micro economics we study individual firm, individual producer, individual consumer etc. Continue reading “Types of Economics”
Economics is the study of human activities which they perform with their limited resources to satisfy their unlimited wants. Continue reading “Concept of Economics and Economic Problem”