Chapter 1 - Economics As A Social Science Flashcards
1
Q
Define - “Disposable Income”
A
The Amount of Money left after the taxes, bills etc. were paid.
2
Q
Define - “Good”
A
A thing produced in order to be sold
3
Q
Define - “Normative Statements”
A
Statements that cannot be supported or refuted as they are value judgements.
4
Q
Define - “Positive statements”
A
Statements that can be supported or refuted by evidence.
5
Q
Define - “Production Possibility Frontier”
A
Shows how much an economy can produce given existing resources.
6
Q
Which statement is Positive, which is Normative?
- “The economy ought to grow by 2% of its current GDP by the end of the year”
- “The inflation should increase”
A
Statement 1 is Positive
Statement 2 is Normative
