Economics 101 Flashcards
1
Q
Positive statement
A
“Will”- Can be tested
2
Q
Normative Statement
A
“Should”-opinion
3
Q
Wants and needs
A
Food-Food banks Water-Monopoly Shelter-Housing Warmth-Electricity/Gas Clothes
4
Q
Scarcity
A
Limited resources
Leads to choices- consumers, businesses and Governments need to make the choice
5
Q
Basic economic problem
A
What to produce
How to produce it
Who to produce it for
6
Q
Command economy
A
Down to the government how economic problem will be solved
7
Q
Free market economy
A
The government does not intervene with the economy
Price mechanism allocates money in the economy- supply and demand
Efficient- businesses that does not produce what people want gets shut down
