Chapter 1 Flashcards
1
Q
What is economics
A
the study of
2
Q
What are the 4 factors of production
A
labor, capital, natural resources, entereprenurial ability
3
Q
What does labor make
A
wages
4
Q
what does capital make
A
interest
5
Q
what does natural resources make
A
rent
6
Q
what does entreprunerial ability make
A
profit
7
Q
who are the 3 fathers of economics
A
Adam smith- Wealth of Nations
Karl Marx- Communist Manifesto/Das Capital
John Maynard Keynes- Keynsien Economics
8
Q
Positive vs. Normative Economics
A
Proven/disproven/Opinion respectively
9
Q
2 fallacies
A
fallacy association = causation
fallacy of composition
