Definitions Flashcards

(9 cards)

1
Q

A Positive Statement

A

A statement based on fact and can be scientifically proven to be correct or incorrect.

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2
Q

A Normative Statement

A

A statement which is based on opinion which cannot be proven scientifically.

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3
Q

Ceteris Paribus

A

Meaning all factors remain the same.

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4
Q

Opportunity Cost

A

The cost of giving up the next best option/alternative.

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5
Q

Needs

Wants

A

A need is something you cant live without.

A want is something that is desirable, could improve the quality of living.

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6
Q

The Key Economic Decisions

A

What to produce;
how to produce;
for whom to produce.

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7
Q

Factors of Production and Its Rewards

A

Are resources used by firms to produce goods/services.
Aka factor inputs.
Land, Labour, Capital, Enterprise.
Reward: Rent, Wages, Interest, Profit.

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8
Q

Economic Problem

A

Scarcity and that is result from limited resources and unlimited wants.

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9
Q

Trade offs

A

The list of alternatives.

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