Basic Economic Problems Flashcards
1
Q
Opportunity cost meaning?
A
Measure of the cost, of the sacrifice, of the next best alternative.(what u sacrifice)
(E.g I want pizza and McDonald’s.But only have £10. I get a pizza.
McDonald’s= opportunity cost
2
Q
Positive statements can be …..
A
Tested
3
Q
Positive statements are…..
A
Subjective statements
4
Q
Normative statements can’t be…..
A
Tested
5
Q
Normative statements are …..
A
Opinions!
E.g. Ronaldo is the goat=Normative statement
6
Q
What is,the central purpose of economic activity?
A
Production of Goods/services to satisfy needs/wants.
7
Q
4 Factors of production?
A
Land
Labour
Capital
Enterprise
8
Q
Factors of production meaning?
A
The inputs used to supply goods/services.(in an economy)
