chapter 1 and 2 Flashcards
(5 cards)
1
Q
Positive economic statement
A
Precise and fact-based. They can be proved with data
2
Q
Normative economic statements
A
Similar to an opinion and based on the values and judgements of the individual making the statement
3
Q
Opportunity cost
A
Is the best alternative forgone when a choice is made due to limited resources
4
Q
Economics
A
Is a social science, that studies how limited resources are allocated to satisfy unlimited wants and needs
5
Q
Specialisation of labour
A
Is the separation of a work process, into smaller tasks that are carried out by separate workers or a group of workers. It leads to an increase in output and greater efficiency (created by Adam Smith)
