Well first we have to start off with the two main types of economics which are macroeconomics,which is the study of the economy as a whole, and microeconomics, which is the study of specific units of the economy..
Macroeconomics consist of:
- supply and demand
- International Trade
- Minimum wage
Microeconomics consists of:
- Market Structures
- Business Organizations
Forms of Economics
Now that we know the different kinds of economics as a whole, now we can start focusing on the different forms of economics which are positive economics, which tries to describe the world as it is and it's very fact based, and normative economics, which tries to describe the world as it should be and is very opinion based.
Positive Example: The gross cost of automobile production has increased 20%.
Normative Example: Pollution is the most serious economic problem.
Here is a link with some additional examples: http://www.tutor2u.net/economics/reference/positive-and-normative-statements
Distinctions in Economics
Now I'm going to cover some distinctions that need to be made in economics such as capital goods vs, consumer goods, and scarcity vs. shortage.
Capital goods involves the items used to create other goods, much like the oven used in a kitchen, while consumer goods are what people buy such as the pizza that is heated in that oven.
Scarcity is the most fundamental problem facing all societies, how to satisfy unlimited wants with limited resources, whilst shortage is that the quantity demanded is greater than the quantity provided.
Factors of Production
Now we come to factors of production, resources required to produce goods and services.
There are four parts to factors of production:
1) Land- natural resources
2) Labor-workforce
3) Capital- ( Human Capital/skills) (Physical Capital/tools and machinery)
4) Entrepreneurship
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