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19 Cards in this Set
- Front
- Back
- 3rd side (hint)
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Choice
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The range of options available to an individual firm or government when making a decision
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Capital goods
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Goods which go into production of other goods. They do not confer utility directly but they produce consumer goods which give utility.
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Consumer goods
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Goods desires for their own sake because of the utility they provide to households
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Economy
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The mechanism through which scarce resources are organised for the production of goods and services
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Macroeconomics
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The study of the economy as a whole rather than the individual markets and other elements of which is consists.
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Microeconomics
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The study of individual markets.
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Scarcity
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The economic condition where all resources and goods and services, although there might be plentiful, it might not be sufficient for the demand.
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Merit goods
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Goods and services which are under provided and the government has to provide more for citizen's
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Public goods
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Goods provided by the government and benefits all citizens even though some may not pay for them
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Example Roads
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Free goods
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Goods which are not scarce
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Example sunshine
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Economic goods
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Goods which are limited in supply and will possess an opportunity cost.
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Example bread
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Demerit goods
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Goods which have a private benefit but also has a social cost.
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Example cigarette smoking
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Normative statement
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Involves an opinion or valued judgement.
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Often recognised by the use of the word 'should' or 'ought'
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Positive statement
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Is verifiable, it can be tested and proven correct or incorrect.
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Often recognised by the use of the word 'is'.
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Ceteris Paribus
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Other things remaining constant
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Money cost
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What was used to produce a given good or service
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Opportunity cost
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The next best alternative foregone.
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Economics
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The study of how man allocates scarce resources which have alternative uses to achieve given ends or goals
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Opportunity cost
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The next best alternative foregone. Aka when buying something and you choose which is better, whatever you're not buying is the opp. cost
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