Micro Economics Flashcards
What Is Economics?
Economics studies how Consumers, Firms and Government choose to use scarce resources to satisfy unlimited needs and wants.
What is Positive Statement?
Positive statements are facts that can be proven false or true.
What is Normative Statement?
Normative Statement are opinions and judgements that can be proven wrong or right.
Who are Consumers?
They are rational decision makers and act in a way to maximize their satisfaction.
Who are Economic Agent?
They are Individual or a group of individuals or organisation that make choices
Who are Producers?
They are rational decision makers and act in a way to maximize their welfare.
What is Economic Welfare?
Economic Welfare is level of prosperity and standard of living can gain.
What is Opportunity Cost?
Opportunity Cost is the cost of the best next alternative
What is Economic Good?
Economic goods are where resources are used to produce them.
What is Free Good?
Free goods are goods that don’t require scarce resources.
What is Economic Resource?
Economic Resources are factors of production which are inputs required to produce a desired output.
What is Land?
Land is all natural resource used to produce goods and services.
What is Labour?
Labour s all human effort both physical and mental used to produce goods and services.
What is Capital?
Capital are man made goods used to produce other goods and services.
What is Enterprise?
Enterprise is a risk taking activity using all other resource to see if a venture may succeed or not.
