Microeconomics
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- Deals with the behavior workers, investors, owners of land, business firms. 

- How economic units interact to form larger units- markets and industries
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Positivie Analysis
Analysis describing relationships of cause and effect

Normative Analysis
Analysis examining questions of what ought to be

Market
Collection of buyers and sellers that, through their actual or potential interactions, determine the price of a product or set of products.

Arbitrage
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Practice of buying at a low price at one location and selling at a higher price in another. 

e.g. Gold
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Perfectly competitive Market
Marekt with many buyers and sellers, so that no single buyer or seller has a significant impact on price.

Market Price
Price prevailing in a competitive market

Extent of a Market
Boundaries of a market, both geographical and in terms of range of products produced and sold within it.

Nominal Price
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- Absolute price of a good, unadjusted for inflation. 

- Current Dollar
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Real Price
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- Price of a good relative to an aggregate measure of prices; Price adjusted for infaltion

- Constant Dollar
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Consumer Price Index
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- Measure of the aggregate price level.

- Percentage changes in the CPI measure the rate of infaltion in the economy
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