1.1.1-1.13 Flashcards
What do Rational Consumers aim to obtain?
They aim to maximise their utility and satisfaction from consumption.
What do Producers/firms aim to obtain?
They aim to maximise profit.
What does the government aim to obtain?
Aims to improve economic and social welfare.
What are 3 Economic Agents?
Producers/Firms
Consumers
Government
What is a Positive Statement?
A statement which can be tested and is free from value judgement.
What is a Normative Statement?
A statement which contains value judgement.
How do value judgments influence economics decisions?
Different political parties carry different views and influence the population with them.
What is an Opportunity Cost?
The loss of the next best foregone alternative.
What is the Basic Economic Problem?
How do we allocate scare resources given unlimited wants.
What are the 4 Factors of Production?
C- Capital
E-Enterprise
L- Land
L-Labour
What is Land?
Natural resources.
What is Labour?
The Human input into production.
What is Enterprise?
Entrepreneurs that organise factors of production and take risks.
What is capital?
Man made goods which aid production.
What is Non-Renewable Resources?
Resources which can not be replenished at the same speed as consumption and are finite.
