1. KRUGMAN'S MACROECONOMICS for AP* Module The Study of Economics 1 Margaret Ray and David Anderson NEW PICTURE TO COME

2. What you will learn in this Module : How scarcity and choice are central to the study of economics The importance of opportunity cost in individual choice and decision making The difference between positive economics and normative economics When economists agree and why sometimes disagree What makes macroeconomics different from microeconomics

3. ndividual Choice: The Core of Economics Individual Choice: The Core of Economics Economics Individual choice Economy Market economy

4. Resources Are Scarce Resources (Factors of Production) Land Labor Capital Entrepreneurship Scarcity and society Examples

5. Opportunity Cost: The Real Cost of Something Is What You Must Give Up to Get It Opportunity Cost Why all costs are opportunity costs Examples

6. Microeconomics Versus Macroeconomics Microeconomics Macroeconomics Economic Aggregates Microeconomic versus Macroeconomic questions

7. Positive Versus Normative Economics Positive economics Normative economics Examples Economic model

8. When and Why Economists Disagree Economists may disagree because they have different values or opinions Economists may disagree because they use different models or methods to conduct their analysis Over time, disputes in economics are resolved by the accumulation of evidence (but this can sometimes take a long time!)