key phrases Flashcards
1
Q
postive statement
A
is a statement of fact. It may be right or wrong, but its accuracy can be tested by appealing to the facts
2
Q
normative statement
A
is a statement of value: a statement about what ought or ought not to be about whether something is good or bad, desirables or undesirable. They cannot br proved or disproved by a simple appeal to the facts
3
Q
oppotnity cost
A
t is the value of the next best alternative option foregone
4
Q
what are the three fundamental
A
what to produce
how to produce
for whom
5
Q
outward shift in the ppf
A
higher productivity better manage,ent of factor inputs increase in stock of capital and labour supply innovation and indentation discovery
6
Q
shift inward ppf
A
desaturation of recourses
natural diapers
large scale net outward labour migration
a trend decline
