Basic Economic Definitions Flashcards
1
Q
Opportunity cost
A
The next best alternative which is foregone after making a choice.
2
Q
Economic goods
A
Goods which are relatively scarce to consumer wants.
3
Q
Free goods
A
Goods which are relatively unlimited to consumer wants.
4
Q
Goods
A
Tangible benefits to human life.
5
Q
Services
A
Intangible actions done to benefit human life.
6
Q
Capital good
A
- Human made
- Used to make other goods and services
7
Q
Positive statement
A
- objective
- scientific
- able to be proved
- value free
- factual
- quantitative
8
Q
Normative statement
A
- subjective
- contains a value judgement
- can be opinionated
