The former deals with the overall economic issues and later deals with issues related to individuals or consumers.The action of passing costs for the next best choice when planning or making a decision. In other words, if one chooses alternate over others, then the cost of choosing that particular alternate is the opportunity cost. It is one way or the other the benefit which an individual loses in terms of choosing one particular product over others.e) Comparative advantage: It generally refers to the ability of an individual, group, country, etc to produce goods, services, or products at a lower opportunity cost than its rival (competitors). Usually, it is useful in terms of determining what should be acquired and what should be produced through trade.f) Absolute advantage: It deals with the ability or potential of an individual, group, or organization to carry out economic operations more effectively and efficiently than to its competitors using the same available resources.g) Labor force participation rate: It measures the active labor force in the total population. This includes people who are either already working (employed) or is actively searching for a job. However, those people who are not currently looking for work are excluded.i) Cyclical unemployment: Unemployment that has been created because of the changes in the cyclical trends of the business cycle. Whenever the business cycle is experiencing a boom, cyclical unemployment would below and when the economy would be going through recession then it would be experiencing higher cyclical unemployment.The circular flow model is a simple economic model that describes the flow of goods and services throughout the economy. In other words, it is a model that describes how money moves throughout the economy. In this model, firms are the overall producers that supply goods and services. However, households are consumers who basically consume these products and services.
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The former deals with the overall economic issues and later