1. The Economic Problem Flashcards
Services
Non tangible products products such as education
Economic welfare
Refers to benefit or satisfaction an individual or society gets from the allocation of resources.
Opportunity cost
The next best alternative forgone when an economic decision is made
Goods
Tangeable products which we can touch such as a CD
Economic goods
Goods that are scarce and therefore have an opportunity cost.
Free goods.
Goods that have no opportunity cost.
Factor market.
The market for the factors of production that make other goods and services.
Renewable resources.
Resources which are able to be replenished over time.
Profit
When total revenue for a firm is greater than total costs.
Value judgements.
Statements or opinions that are not testable or cannot be verified. Depend very much in the views of the individual.
Normative statements.
Opinions that require a bue judgement to be made.
Positive statement.
Statements that can be tested agains real world data.
Goods
Tangible products that we can touch such as CD’s
