Write short note on- a) Product b) Commodity c) Need d) Positive and Normative Economics e) Economic theory

a)   Product:

Product is anything that can be offered to a market that might satisfy a want or need. Products are purchased as raw materials and sold as finished goods.

b)   Commodity:

Commodity is the generic term for any marketable item produced to satisfy wants or needs. Economic commodities comprise goods and services. It has to have two characteristics:

1. Usually produced and or sold by many different companies.

2. is uniform in quality between companies that produce/sell it.

Example- wood, oil, electricity etc.

c)   Need:

A need is something you have to have, something you can't do without. A good example is food. If you don't eat, you won't survive for long.

d)   Positive and Normative Economics:

Statements about what is are called positive economics. A positive economics might be right or wrong. We can test a positive statement by checking it against the facts. For example- when a chemist does an experiment in her laboratory, she is attempting to check a positive statement against the facts.

Statements about what ought to be are called normative economics. These statements depend on values and cannot be tasted. For example- when national parliament debates a motion, it is ultimately trying to decide what ought to be. It is making a normative economics.

e)   Economic theory:

An economic theory is a generalization that summarizes what we think we understand about the economic choices that people make and the performance of industries and entire economy. It is a bridge between an economic model and the real economy.