chapter 1 (the economic problem) Flashcards
1
Q
normative statement
A
have value judgement and cannot be scientifically tested
2
Q
positive statement
A
can be tested to see if it is correct or incorrect
3
Q
capital good (producer good)
A
a good used in the production of other goods and services
4
Q
consumer good
A
good or service consumed by individuals or households to satisfy needs or wants
5
Q
factors of production
A
inputs into the production process
land, labour, capital, enterprise
6
Q
fundamental economic problem
A
how to best allocate scarce resources among competing uses to maximise human welfare
7
Q
scarcity
A
infinite wants finite resources
8
Q
opportunity cost
A
cost of giving up next best alternative
