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22 Cards in this Set
- Front
- Back
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Positive Statements |
A statement of fact that can be verified. |
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Normative Statement |
A statement of opinion or belief that cannot be verified |
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Macroeconomics |
The study of how the major components of an economy interact; it includes the topics of unemployment, inflatation, interest rate policy, and the spending and taxation policies of the government. |
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Microeconomics |
The study of the outcome of decisions by people and firms; it focuses on the supply and demand of goods, the costs of production, and market structures. |
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Resources (inputs or factors of production) |
Physical or virtual entities that can be used to produce goods and services. |
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Labour |
Human physical and mental effort that can be used to produce goods and services. |
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Capital |
Human-made goods that are used to produce other products. |
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Land |
Any natural resources that can be used to produce goods and services |
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Enterprise |
The human resource that innovates and takes risks |
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Wages |
The payment made and the income received for the use of labour |
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Interest |
The payment made and the income received for the use of capital |
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Rent |
The payment made and the income received for the use of land |
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Profit |
The income received from the activity of an enterprise. |
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Technology |
A method of production; the way in which resources are combined to produce goods and services. |
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Opportunity Cost |
The value of the next-best alternative that in given up as a result of making a particular choice. |
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Consumer goods and services |
Products that are used by consumers to satisfy their wants and needs. |
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Productive efficiency |
the production of an output at the lowest possible average cost. |
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Allocative Efficiency |
The production of the combination of products that best satisfies consumers' demands. |
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Production possibilities curve |
a graphical representation of the various combinations of maximum output that can be produced from the available resources and technology |
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Law of increasing costs |
as an economy's production level of any particular item increases, its per-unit cost of production rises. |
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Scarcity |
Represented by points outside the production possibilities curve |
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Choice |
represented by points on the curve (efficient) and points withing the curve (inefficient). |
