1.1 & 1.2 Flashcards
(9 cards)
The factors of production used to produce goods and services.
Resources
The desire to consume goods and services to derive satisfaction from their consumption.
Scarcity
The maximum relative amounts of two goods a country can produce with a given availability of resources at a point in time.
Production possibility curve
The use of scarce resources to produce goods and services in the present does not impact their availability in the future.
Sustainable economic activity
The highest value alternative foregone for the option chosen in a decision-making situation.
Opportunity cost
The interaction of demand and supply in markets determines the allocation of resources in an economy.
Free market
This is evidence gathered by observing how people behave and by using data.
Empirical data
Objective statements that can be proved true or false based on empirical evidence.
Positive economics
Value judgements that cannot be proved to be true or false based on empirical evidence.
Normative economics
