Macro Flashcards
1
Q
What is Ceteris Paribus
A
Means ‘all other things remain equal’
Allows economists to simplify models
2
Q
What is a Positive Statement
A
A statement made without obvious judgements or emotions
3
Q
What is a Normative Statemtent
A
A statement which is subjective and is based on opinion
4
Q
What is the Basic Economic Problem
A
Humans have infinte wants but there are finate resources to satisfy these wants
What to produce
How to produce it
Whom to produce it for
5
Q
A
