1.1.1 - 1.1.3 Economics as a Social Science Flashcards
1
Q
Positive Statements
A
Objective statements that can be tested
2
Q
Ceteris Paribus
A
All other influencing factors are held constant
3
Q
Normative Statements
A
Subjective statements/value judgments that cannot be tested
4
Q
Economic Problem
A
Infinite want but finite resources
5
Q
Factors of Production
A
Capital: Goods made that are used to supply other products
Enterprise: Organise factors of production and take risks
Land: Natural resources
Labour; Quantity and Quality of human input in production
6
Q
Capital goods
A
Used to make consumer goods and services
7
Q
Non-renewable resources
A
Finite in supply
8
Q
Renewable resources
A
Replaceable if rate of extraction is less than natural rate resource renews
9
Q
Opportunity cost
A
Cost of alternative that is given up/forgone when a choice is made
10
Q
A
