Whydopeopleusemoney Case Study

A. Positive:“Whydopeopleusemoney?”
A positive economist is objective and bases his opinions on facts. Those do not need to be correct but they must be able to be proven. B. Normative:“Shouldpeopleusemoney?”
A normative economist is subjective and is based on value. His statements are based on his own opinions, therefore they cannot be proven or disproven.
Ways to study economics:
The field of study of the economy is divided into three main branches: microeconomics, macroeconomics and econometrics.
A. Microeconomics:
Is the approach that studies individuals and markets. It focuses on the study of the behavior of individual economic sectors. Some questions that microeconomics might try to solve are: How the use of machines affect the cost of agriculture? How does a tax

Is seen as a science relating to the laws of production, distribution and exchange. Where economics in terms of wealth emphasize production and consumption.
B. A science of scarcity: The way by which scarce resources are distributed to satisfy a demand.
TEN PRINCIPLES OF ECONOMICS:
1. People face trade-offs
Doing one thing makes us unable to another. To get one thing, we usually have to give up another that we also like. One example is when you go grocery shopping and you have to decide which things you are going to get. Another one is the wars, where in its last stages, once the food that kept the armies standing has been finished, the government had to choose between feeding them or obtaining more weapons.
2. The cost of something is what you give up to get it
Based on the first principle, the individual compares the cost and benefits of the differents options for making his final decision. So, many times the cost of a thing means giving up another thing. One example: Messi left high school to play professional football. Athletes who can earn millions if they drop out of school and play professional sports are well aware that they have to give up their education to have a