economics as a way of thinking chpt 1

Question 1

economics

Answer 1

a social science, which studies human behaviour in relation to peoples aims and the scarce resources available to them, in order to achieve these aims, knowing that the resources have alternative uses

Question 2

opportunity cost

Answer 2

the cost of forgone alternatives

when you don’t have enough to have two products, the product you don’t buy is the opportunity cost

Question 3

normative statement

Answer 3

this cannot be upheld or disproved
they are opinions about how economies and markets ought to work and are based on personal beliefs, values or political persuasion

Question 4

positive economic statement

Answer 4

can be proved to be true or false by providing evidence

eg “the economy grew by 3% in the last Q” can be proved/disproved by looking at the CSO for evidence

Question 5

NGOs

Answer 5

non governmental organisation

any non profit, voluntary citizens group that is organised on a local, national or international level

Question 6

externality

Answer 6

unintended effects on third parties

Question 7

choice

Answer 7

in economics resources are scarce and have alternative uses, where as wants are infinite
as a result, choices must be made and these choices involve an opportunity cost

Question 8

sustainability

Answer 8

the ability to continue a defined behaviour indefinitely
sustainable development meets the needs of the present without compromising the ability of future generations to meet their needs
considering economic, social, environmental conditions

Question 9

main challenges in implementing SDGs

Answer 9

international instability (famine,disasters,recession)
implementing goals into local programmes
co-ordination of governance between nation states

Question 10

why protecting the environment is important to governments

Answer 10

create a healthy society
pressure to meet international targets
demands by public for improvements