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Flashcards in Definitions Deck (9)
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1

A Positive Statement

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

2

A Normative Statement

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

3

Ceteris Paribus

Meaning all factors remain the same.

4

Opportunity Cost

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

5

Needs
Wants

A need is something you cant live without.
A want is something that is desirable, could improve the quality of living.

6

The Key Economic Decisions

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

7

Factors of Production and Its Rewards

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

8

Economic Problem

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

9

Trade offs

The list of alternatives.