KT1: 1.1.1 The Economic Problem Flashcards
1
Q
Factors of production
A
land labour capital entreprise
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
Trade-off - choosing more of one thing and less of another, rather than making a simple either/or choice.
5
Q
Positive statements
A
Positive statements - statements about the economy which are testable as factual or false, normally on the basis of observation and evidence.
6
Q
Normative statements
A
Normative statements - statements about the economy which depend on opinion and judgement. They involve ideas on what should be done. Also called value judgements.
