Introduction to Micro-Economics Flashcards
What are the four factor inputs?
Land
Labour
Capital
Enterprise
What are the main sources of income for people?
Wages and Salaries from a job
Interest and savings held in bank accounts
Dividends from share ownership
Rent income.
How is wealth defined?
Stock of assets that in turn causes a flow of income.
What is social capital?
Social infrastructure such as transport systems, schools and hospitals.
How is income defined?
A flow concept.
What is marketable wealth?
Items that can be sold for a price e.g rare antiques and fine wines.
What is economics?
Economics studies the choices people take under the conditions of scarcity and uncertainty.
What happens when price increases?
Demand decreases.
What is a normative statement?
Subjective statements, carry value judgements.
What is a positive statement?
Objective statements that can be tested, amended or rejected by referring to the available evidence.
What is a value judgement?
A value judgement is a subjective statement of opinion that a fact that can be tested by looking at the available evidence.
What is a value judgement?
A value judgement is a subjective statement of opinion that a fact that can be tested by looking at the available evidence.
What is a empirical approach?
Focusing in on the evidence.
What is an economic good?
One that has an opportunity cost.
Why do people have to make choices?
Wants exceed resources.
