Introduction To Economics Flashcards
1
Q
Define economics
A
It is the study of how scarce resources are allocated among unlimited needs and wants
2
Q
Define scarcity
A
It the point where resources are not able to meet the needs and wants of the society
3
Q
Define positive statements
A
These are facts based on what has already been experienced
4
Q
Define normative statements
A
These are statements based on opinions and judgements
5
Q
Define the PPC
A
It is a curve which shows what a country can produce with it’s existing supply of resources
6
Q
What is opportunity cost
A
It is the cost of the second best alternative forgone
7
Q
What is a free market
A
It is a Market economy where resource allocation is done by private individuals
