1
Q
What is the Economic problem?
A
Difference between scarce resources & infinite wants and needs
2
Q
What does the economic problem lead to?
A
- What to produce?
- How to produce?
- Who to produce for?
3
Q
Main factors of production?
A
CELL
4
Q
What is opportunity cost?
A
Value of the next best alternative foregone
Economics Theme 1
flashcards
Decks in class (22)
# Cards
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1.1 Social Science3
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1.2 Positive & Normative Statements4
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1.3 The Economic Problem4
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1.4 Production Possibility Frontiers10
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1.5 Specialisation & Division of Labour8
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1.6 Free market, Mixed and Command Systems6
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2.1 Rational Decision Making4
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2.2 Demand8
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2.3 Price, Income and Cross Elasticities of Demand15
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2.4 Supply4
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2.5 Elasticity of Supply3
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2.6 Price Determination3
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2.7 Price Mechanism6
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2.8 Consumer & Producer Surplus8
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2.9 Indirect Taxes and Subsidies10
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2.10 Alternative views of Consumer behaviour2
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3.1 Types of Market Failure5
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3.2 Externalities9
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3.3 Public Goods8
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3.4 Information Gaps8
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4.1 Government Intervention in Markets28
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4.2 Government Failure5
