value judgments, positive & normative statements Flashcards
1
Q
define value judgement
A
statements expressed that aren’t testable or cannot be verified amd depend on view of the individual and the value they hold
2
Q
define normative statement
A
opinions that require value judgements
3
Q
define positive statement
A
cannot be tested against real world data
4
Q
define economic problems
A
resources are scarce, wants are infinite
5
Q
define economics
A
study of the allocation of these scarce resources within society
6
Q
why do resources require trade offs
A
because they are scarce
7
Q
what do scarce resources lead to
A
opportunity costs
8
Q
what do we assume consumers are when decisions are made
A
they are rational
9
Q
define rationality
A
maximising their own welfare
