a) Economics: Study of how society manages its scarce resources

b) Microeconomics: is the study of how households and firms make decisions and
how they interact in specific markets.
c) Macroeconomics: is the study of economywide phenomena such as the federal
deficit, the rate of unemployment, and policies to improve our standard ofliving.
d) Positive Economics
- Factual analysis , the analysis of "what is"
- there are no personal judgement involved
- positive statement can be tested , can be proven or disproven
e) Normative Economics
- Opinion -based analysis, the analysis of "what should be"
- Involved personal judgement or ideal
- normative statement cannot be proven or disproven

f) Opportunity costs: Whatever is given up to get something else

g) Law of demand: The claim that, other things equal, the quantity demanded of a
good falls when the price of the good rises
h) Law of supply: The claim that. other things equal, the quantity supplied of a
good rises when the price of the good rises
i) Quantity Demanded: The amount of a good that buyers are willing and able to
purchase
j) Quantity Supplied: The amount of a good that sellers are willing and able to sell
k) Scarce resources : scarce resources include everything wecan think of that might
be used in producing anykind of good or service.
l) Goods market : A market is a place where parties can gather to facilitate the
exchange of goods and services.
m) Market supply: is the sum of the quantity supplied for each individual seller at
each price.
n) Market demand: is the sum ofthe quantities demanded for each individual buyer
at each price.
o) Surplus: A situation in which quantity supplied is greater than quantity
demanded
p) Substitutues: Two goods for which an increase in the price of one leads to an
increase in the demand for the other
q) Compliments: Two goods for which an increase in the price of one leads to a
decrease in the demand fi)r the other
r) Diminishing marginal product : Fall in the rate-of-increase in output of a process
as the amount of an input is increased, while the amount of other inputs is held
constant.
s) Shortage: A situation in which quantity demanded is greater than quantity
supplied
t) Market equilibrium : An economic state where the supply and demand curves
intersect and suppliers produce exactly the amount of goods and services that
consumers are willing and able to consume.
u) Revenue : is the total amount of money obtained from the sale, sale of products
or provision of services, financial and other activities of an enterprise to the market
and increases the amount of equity.
v) Economic cost :  is the combination of losses of any goods that have a value
attached to them by any one individual.
w) Average total costs : is the aggregate of all costs incurred to produce a batch,
divided by the number of units produced.
x) Total fixed costs : The overall sum of expenses that stays constant for a business
even though its production output changes. 
y) Total Variable Costs: Total Variable Cost can be defined as the total of all the
variable costs that would change in proportion to the output or the production of
units and therefore helps in analyzing the overall costing and profitability of the
company.
z) Marginal Costs : is the change in the total cost that arises when the quantity
produced is incremented, the cost of producing additional quantity.
aa) Marginal Revenue: is the revenue that is gained from the sale of an additional
unit.
bb)Price ceiling: A legal maximum on the price at which a good can be sold
cc) Price floor: A legal minimum on the price at which a good can be sold
dd)Price taker: is an individual or company that must accept prevailing prices in a
market, lacking the market share to influence market price on its own.
ee) Price maker: is an entity that has the power to dictate the price it charges
because there are no perfect substitutes for the goods it sells.
ff) Equilibrium price: The price that balances quantity supplied and quantity
demanded
gg)Economic profits: is the difference between the revenue received from the sale
of an output and the costs of all inputs used, as well as any opportunity costs.
hh)Perfect competitive market
ii) Pure monopoly market: is a situation in which a single corporation controls the
whole supply of goods or services
jj) Price elasticity of demand: A measure of how much the quantity demanded of a
good responds to a change in the price of that good.