1.1 THE ECONOMIC PROBLEM Flashcards
1
Q
what are the 3 economic agents
A
consumer, firms, government
2
Q
what are the 4 factors of production
A
land, labour, capital, enterprise
3
Q
what’s a positive statement
A
statement capable of being verified by resorting to fact or further investigation
4
Q
what’s a normative statement
A
contains a value judgement which can’t be verified
5
Q
define FOP land
A
all natural resources and its produce
6
Q
define FOP labour
A
the physical and mental work of labourers
7
Q
define FOP capital
A
man made goods used to produce more goods including factories and machinery
8
Q
define FOP enterprise
A
the F.O.P that organises all other F.O.P’s in order to produce a good or service and takes all the risk in the hope of making a profit
9
Q
A
