Principles of Economics:

Microeconomics is the study of the decisions of individuals, households, and businesses in specific markets, whereas macroeconomics is the study of the overall functioning of an economy such as basic economic growth, unemployment, or inflation. Scarcity in microeconomics is not the same as poverty. It arises from the assumption of very large (or infinite) wants or desires, and the fact that resources to obtain goods and services are limited.

• wants exceed resources necessary to obtain them
• therefore we must make choices
• every choice leads to a cost

Lecture Notes Series No.1