KT1 - 1.1.1 The Economic Problem, 1.2.3 Factors of Production Flashcards
1
Q
Factors of Production
A
are land, labour, capital and enterprise.
2
Q
Scarce resource
A
anything useful which is not available in unlimited quantities.
3
Q
Opportunity cost
A
the best alternative given up.
4
Q
Trade-off
A
choosing more of one thing and less of another, rather than making a simple either/or choice.
5
Q
Positive statements
A
statements about the economy which are testable as factual or false, normally on the basis of observation and evidence.
6
Q
Normative statements
A
statements about the economy which depend on opinion and judgement. They involve ideas on what should be done. Also called value judgments.
