Economic Methodology Flashcards
what is a social science?
observation of human behavior
what is the basic economic problem?
The idea that there are scarce resources and unlimited wants.
What are the scarce resources?
Capital, Enterprise, Land, Labour
what is an opportunity cost?
The cost of the next best alternative forgone when a choice is made.
PPF
https://www.youtube.com/watch?v=IzccVWouIxM
Difference between a positive statement and a negative statement?
a positive statement refers to objective statements that can be tested with evidence.
A normative statement are subjective statements containing a value judgement.
Who are the 3 main economic agents?
Producers,consumers,governments
Trade off definition
A trade-off is when you have to choose between conflicting objectives at the same time involves a compromise.
what shifts PPF?
economic growth involving improvements in technology, increasing resources and possible output in an economy.
PPF shifting inwards shows economic growth.
