Nature Of Economics Flashcards
1
Q
Basic economic problem
A
Finite amount of resources whereas there are infinite/unlimited wants meaning resources insufficient causing scarcity
2
Q
What is opportunity cost
A
The forgone of the next best alternative when a choice is made
3
Q
What is production
A
Any activity which helps to satisfy wants
4
Q
Positive statements
A
A statement that can be proven or disproven upon further investigation/research
5
Q
Normative statements
A
Expresses a value judgement about whether a situation is desirable or undesirable
There is no way of disproving this statement
Statements that include: should, ought or prefer are likely normative
