Economic Problem Flashcards
(6 cards)
1
Q
What is a positive statement?
A
Statement that can be proven. Facts
2
Q
What is a normative statement?
A
Statements that contain value judgement (an opinion).
3
Q
What is the economic problem?
A
The problem of scarcity where there are unlimited wants but scarce resources (factors of production).
4
Q
What is ceteris paribus?
A
Ceteris paribus means all other things being equal.
5
Q
What are renewable resources?
A
Renewable resources can replenish itself over time, it has an infinite supply.
6
Q
What are non-renewable resources?
A
Non-renewable resources are limited in quantity and cannot replenish itself.
