The Economic problem Flashcards
1
Q
What is the Basic economic Problem?
A
Scarcity, wants are unlimited but resources are finite so there is a CHOICE
2
Q
What are the 4 factors of production?
A
Land, Labour, Capital and Enterprise
3
Q
What is an Economic good ?
A
Good with an opportunity cost and that are Scarce
4
Q
What is a free good ?
A
Goods with no opportunity cost, not traded
5
Q
What is a normative statement ?
A
Opinions
6
Q
What is a Positive statement ?
A
Statements with factual evidence which can be proven or disproven
7
Q
What is Rationalisation ?
A
Decision making that leads to economic agents maximising their utility
8
Q
Scarcity is …
A
Shortage of resources
9
Q
What are the three types of economic agents ?
A
Government, Firms and households
10
Q
What are the three types of economic agents ?
A
Government, Firms and households
