Study of economics

Based on what you have read in this class so far, how would you describe the study of economics to a friend who asked you about it?

Why is it important for someone in your field to know about economics, even if it is on a fairly basic level?

b. Positive and normative statements

Give one example each of a positive and a normative economic statement about the current economic situation. Describe the difference between the two types of statements and explain why it is important to understand the difference between the two.

c. Economic reality versus theory

Describe the relationship between economic reality and economic theory.

Relate your response to your discussion of normative and positive statements, including information about scarcity and what the term marginal means within the context of economics