Economics as a social science Flashcards

1
Q

What is economics?

A

It is concerned with the ways in which societies organise scarce productive resources in order to statisfy peoples wants.

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2
Q

What is ceteris paribus?

A

Means that when the effect of change is considered it is assumed that all other variables are held constant

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3
Q

Why is it impossible to make scientific experiments?

A

Because economics is a social science involving people

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4
Q

What are positive economic statements?

A

Are objective statements based on evidence or facts that can be proved or disproved,

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5
Q

What are normative economic statements?

A

Are subjective statements based on value judgements and cannot be proved or disproved.

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6
Q

What is scarcity?

A

Exists because resources are finite while wants are infinite.

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7
Q

What are the 3 economic questions?

A

What to produce

How to produce

For whom to produce

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8
Q

What are the 4 factors of production?

A

Capital: man made aid to production

Enterprise: bringing together the other FOPs and taking risks in production

Land: natural resources

Labour: human effort both physical and mental

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9
Q

What are renewable resources?

A

Are those whose stock levels can be maintained at a certain level

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10
Q

What are non renewable resources?

A

Are those that will eventually be completely depleted

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11
Q

What is opportunity cost?

A

It is the next best alternative that is forgone when a choice is made

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12
Q

What are economic goods?

A

Created from resources which are limited in supply and so are scarce and they command a price.

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13
Q

What are free goods?

A

They are unlimited in supply and have the opportunity cost of 0 since consumption by one person does not limit the consumption of others

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