Gross Domestic Product

GDP: Gross Domestic Product, it`s the value of all the goods and services produced by the country during a once year, sometimes it could be a misleading indicator for growth

The rate of the Economics growth: this when we compare the GDP of this year with any previous year to get the rate of the economic growth, the base year should be a normal year, a year with no exceptions.

• Positive economic: it depend on information’s, facts which ended to full agreement, it’s called the descriptive economic, descriptive economics occurs when economists make observations, notice patterns, and record facts. Positive economic statements do not have to be correct, but they must be able to be tested and proved or disproved

• Normative economic: starts with analyzing the facts, many points of view to reach out a decision, and there is no full agreements here, it`s called the prescriptive economics, Normative economic statements are opinion based, so they cannot be proved or disproved.

While this distinction seems simple, it is not always easy to differentiate between the positive and the normative. Many widely-accepted statements that people hold as fact are actually value based.

A clear understanding of the difference between positive and normative economics should lead to better policy making, if we agreed to made policies based on facts (positive economics), not opinions (normative economics).

• The decision makers should be

1. Knowledgeable

2. Honest

3. Having experience

• Microeconomics examines the actions of individual agents such as households and business firms. It is mainly interested in the decisions of individuals concerning using their own limited resources for their Cost of Living and the impact of those decisions