What is your understanding of the Economic Perspective?
In my understanding I believe the economic perspective is the viewpoint of the choice, actions, and marginal analysis. It touches base into these three. In this world, everyone makes choices from choosing what companies you want to work for, or to which restaurant you want to eat at. Any choices we make, it can have an effect on the economy either in a positive or negative way. It can also bring consumer’s happiness or satisfaction because whatever decision he or she makes, it will be for the right reason. It uses marginal analysis and with that the companies can use it to see their profits.
How do you use in your daily life
After knowing the understanding of economic perspective, I use it
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I know that there is a difference; macroeconomics oversees the whole part of the economy. For example, it examines business, government, and more. Macroeconomics doesn’t go in depth and doesn’t pay too much attention to the small details. Now for microeconomics, it goes more in depth meaning it examines the consumer individual, industry, and etc. Like it says in the book, it looks at the prices of the goods and the income. In order to succeed, every part within the whole has to be examined.
Positive and normative economics
A positive economics defines a true statement. It pays attention to facts and not what the world around them believes in. It focuses on description, the testing or the progress of theories. It forms the true facts of the behavior of the economics and the economy. While a normative economics is where there is a statement the expresses what someone thinks it is or how it should be, add their own idea and judgment. I can see that it tries to get people’s viewpoint. It does not look at the whole of the economy but on certain parts of it.
In Appendix One there is a discussion of direct and inverse