1.1.1 Introduction to economics Flashcards
Microeconomics
The study of businesses and individual markets
Macroeconomics
The study of markets on a national and transnational scale
Social Science
The study of societies and human behaviour
Ceteris paribus
All things being equal
Opportunity cost
The value of the next best alternative foregone
Positive statements
Objective statements that can be checked or tested.
Normative statements
Subjective statements which contain a value judgement.
What type of statement is this? - (Positive or Normative)
“The UK spends £45 billion on defence”.
Positive
What type of statement is this? - (Positive or Normative)
“Colchester will require at least one more primary school by 2030.”
Positive
What type of statement is this? - (Positive or Normative)
“If pensions are cut, more elderly people will die in the winter months.”
Positive
What type of statement is this? - (Positive or Normative)
“The government should reduce the UK’s overseas aid budget”.
Normative
What type of statement is this? - (Positive or Normative)
“People buy Apple products because they are more expensive.”
Normative
What type of statement is this? - (Positive or Normative)
“The government must donate more resources to the NHS”
Normative
