micro starter Flashcards
1
Q
Define ceteris paribus
A
looking at the relationship between two variables whilst holding all other variables constant
2
Q
Give 2 examples of positive statements
A
the unemployment rate is 7%
3
Q
Give 2 examples of normative statements
A
the government should give more finance to students
4
Q
Define opportunity cost
A
the option sacrificed when making a decision
5
Q
Write a definition of the term trade-off
A
Opportunity cost is the cost of the next best alternative, however there may be a range of alternatives all of which have been given up. All of these alternatives are referred to as ‘trade-offs’
6
Q
A
