AP Macro Economics Notes: Aung Thuta Nyan

Module 1
-Every issue involves choice; the most basic of economics
-US have a market economy; where the government or other associations do not
influence firm choices, own choices are made.
-One scarce thing for everyone is time. It can be proven by the fact that so many
people are willing to trade money for time. E.g. Convenience Store
-Deciding to spend time on something may involve (usually) opportunity costs
-Societys choice is the sum of individual choices
-Sometimes making choices for scarce resources maybe done by higher ranks
(government)
-Opportunity cost: the literal cost + the forgone opportunity of your second best
choice
-Positive economic is the analysis of economists saying how economy work where is
Normative economic is the analysis of economists saying how economy should work
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