Economic methodology + economic problem Flashcards
(6 cards)
1
Q
Economic problem
A
Infinite wants and needs but finite resources
2
Q
Factors of production
A
- Land
- Labour
- Capital
- Enterprise
3
Q
Oppt cost
A
Next best alternative foregone
4
Q
Positive statement
A
Objective facts, no value judgement
5
Q
Normative statement
A
Opinions, value judgement
6
Q
Production possibility diagram
A
Max possible outcomes when resources fully + efficiently employed
- Outward shift = increased quantity/quality of FoP, tech advancements
- Inward shift = decreased quantity/quality of FoP
