Macro Economics Flashcards
Why do we need to make choices?
Choices have to be made because resources are scarce and people have unlimited needs and wants.
What is the definition of Economics?
Economics is the study of how individuals, businesses and governments make choices about how to produce goods and services to satisfy consumers needs and wants.
What are the factors of production?
Natural resources, Labour, Entrepreneurship and Capital goods.
What is the remuneration of Natural resources?
Rent
What is the remuneration of labour?
Wages.
What is the remuneration of Capital goods?
Interest
What is the remuneration of Entrepreneurship?
Profit
What is Micro economics?
Microeconomics studies the individual parts of the economy.
What is Macro economics?
Macroeconomics studies the whole economy
What is a positive statement?
A positive statement is an objective statement of fact and must be able to be proved or disproved with a fact backing it up.
What is a normative statement?
A normative statement is an opinion or value judgement, it cannot be proven or disproven.
