AC 1.1 Flashcards
What is Economics?
Why do economists develop models?
What does ceteris paribus mean?
Why do economists make asssumptions?
Explain the difference between a positive & normative statement.
What are the 4 factors of production & their payments?
Explain the difference between renewable & non-renewable resources.
Explain the difference between capital & consumer goods.
Define the basic economic problem.
Define opportunity cost.
What are the 3 fundamental economic questions?
What is a PPF?
List the assumptions of the PPF model.
Illustrate & calculate opportunity cost on a PPF.
What do points inside & outside the boundary represent?
What shifts the PPF?
Illustrate the difference between SR & LR economic growth using a PPF diagram.
What 3 things does the PPF demonstrate about efficiency?
Show & explain the difference between linear & non-linear shifts in the PPF.
What is specialisation?
What are the advantages & disadvantages of specialization?
Explain the difference between free market, mixed & planned economies referring to the ideologies of SMITH, MARX & HAYEK.
Outline the role of the state in a mixed economy.
