Nature Of Economics Flashcards
1
Q
What are the factors of production?
A
Land, Labour, Capital and Enterprise
2
Q
What is the law of increasing opportunity cost?
A
The more we produce of something, the more we have to give up of our original product
3
Q
What is productive efficiency
A
When the economy is producing along its PPF
4
Q
What is allocative efficiency
A
When an economy maximises its welfare
