LMR Flashcards
1
Q
Positive statements
A
Objective statements that can be proved
2
Q
Normative statements
A
Opinions that contain value judgments
3
Q
Value judgments
A
Opinions that cannot be quantified or tested
4
Q
Allocative efficiency
A
When specific point on PPF curve ensures that production of both goods is at maximum efficiency
5
Q
Productive efficiency
A
When specific point on PPF curve doesn’t ensure maximum efficiency, leading to there being spare capacity in economy
6
Q
PASIFIC factors that affect demand
A
Population
Advertising
Substitute
Income
Fashion
Interest Rate
Complements
7
Q
PINTSWC factors that affect supply
A
Productivity
Indirect Tax
Number of Firms
Technology
Subsidies
Weather
Cost of Production
