1.1.1 - 1.1.3

Question 1

Ceteris paribus.

Answer 1

All other things remain equal.

Question 2

Economic agents.

Answer 2

The major groups involved in economic activity: Consumers, Producers (businesses) and the government.

Question 3

Normative statement.

Answer 3

Statements that involve value judgments or express personal opinions about what ought to be or what should be. They are not based on factual observation.

Question 4

Positive statement

Answer 4

Objective statements of fact which can be tested using evidence. This means that it can be verified to be true or false.

Question 5

Social science

Answer 5

When observations are made of human behaviour and then theories are made around these observations.

Question 6

Value judgements

Answer 6

An evaluative statement (based on a normative/subjective statement) of how good or bad a person considers an idea or action is. Economics often need to make value judgements when making economic choices.

Question 7

What is the basic economic problem ?

Answer 7

There are unlimited wants and finite resources.

Question 8

Non-renewable vs Renewable resources.

Answer 8

Renewable resources can naturally replenish whereas non-renewable resources can not.

Renewable:
- Wind energy
- Solar panels
- Hydroelectric

Non-renewable:
- Coal
- Oil
- Gas.

Question 9

What is an opportunity cost ?

Answer 9

The value of the next best alternative that is forgone when a decision is made.

Question 10

Land

Answer 10

All natural rescources used in production