Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Economics > 4.1.1 Economic methodology and the economic problem > Flashcards

4.1.1 Economic methodology and the economic problem Flashcards

1
Q

What is the significance of economics being a social science?

A

It reflects human behaviour, and is therefore more subjective than natural sciences

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What is a positive statement?

A

Something that is objective ie the truth

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What is a normative statement?

A

Something that is subjective/uses value judgement/opinionated

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

How do value judgements influence economic decision making?

A

They are subjective

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

What is the central purpose of economic activity?

A

The production of goods and services to satisfy needs and wants

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What are the key economic decisions?

A

What to produce, how to produce and who is to benefit from the goods and services produced

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

What is the classification of economic resources (factors of production)?

A

Land, labour, capital and enterprise

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

What is land?

A

Natural resource, gets rent

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

What is labour?

A

Human effort, gets wage (hourly)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

What is capital?

A

Man-made resource, gets interest

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

What is enterprise?

A

The organisation of other factors of production, gets profit

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

What type of resource is the environment?

A

Scarce

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

What is the economic problem?

A

There is limited resource but unlimited wants

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Why is there scarcity?

A

Due to there being limited resource but unlimited wants

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

What is the opportunity cost?

A

The benefit/value of the alternative forgone when a choice is made

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

What do production possibility diagrams illustrate?

A

Resource allocation, opportunity cost and trade-offs, unemployment of economic resources, economic growth

17
Q

What does it mean when a point is on the PPF?

A

It is productively efficient

18
Q

What does it mean when a point is inside the PPF?

A

Resources are being wasted (usually high unemployment)

19
Q

How is the opportunity cost shown on a PPF?

A

By the gradient at a point on the PPF

20
Q

Why does the opportunity cost vary along the PPF?

A

The FoP are not homogenous as there are different skill sets/inputs for the different products on the 2 axis

21
Q

What is economics?

A

The study of how resources are allocated

Economics (15 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions