Theme 1 - Nature Of Economics Flashcards
1
Q
Demand
A
The quantity of g/s people are willing and able to buy at a given time and price
2
Q
Shift in demand (5)
A
Income
Season
Trends
Advertising
Interest rates
3
Q
What is ceteris paribus
A
All other things being equal
4
Q
Rational consumer
A
Have full info
Maximise welfare
5
Q
Positive statement
A
Can be tested
6
Q
Normative
A
Opinion
7
Q
What is the opportunity cost
A
The cost of giving up the next best thing
8
Q
Definition of PPF
A
Shows max possible output of tow goods and services an economy can achieve when all resources are employed
9
Q
Specialisation definition
A
Become good at producing a specific good = increase efficiency
