Scarcity, Choice And Opportunity Cost

Front 1

Economics

Back 1

Study of choice to employ scarce productive resources, that has alternative uses, to produce other commodities and over time distribute for consumption

Front 2

Wants

Back 2

Things people would consume if they have unlimited resources

Front 3

Resources

Back 3

Factors of production (like land, labour, physical capital, entrepreneurship)

Front 4

Goods and services

Back 4

Refer to anthing that gives a person satisfaction

Front 5

Positive economics

Back 5

Describes and explains economic phenomena, focusing on facts and C&E r/s.

Front 6

Positive statement

Back 6

Statement of fact. Maybe right or wrong (Must be tested for accuracy)

Front 7

Normative Economics

Back 7

Expresses value judgements abt ecnmc fairness / outcm of ecmy / policies

Front 8

Normative statement

Back 8

1. Statement of value of what ought or not be

2. Cannot be tested for accuracy

3. Cannot proven true by ref of obj data

Front 9

Cause of scarcity

Back 9

Limited resources and unlimited wants

Front 10

Factors of production/input +mild descrptn

Back 10

Land - productive resources supplied by nature

Labour - human effort (employed & looking 4 employment)

Capital

1. physical capital (e.g raw material) & man made resources (machines, factories)

2. Financial capital (bonds, stocks & bank deposits)

3. Human capital (talent & skills)

Entrepreneurship - organising & managing FoP

Front 11

Rational choices

Back 11

Compares costs and benefits of alts, choosing one that maximises utility

Front 12

3 decision making units.

Back 12

Gov, consumer, producer

Front 13

Consumer choice

Back 13

Choice that yields highest satisfaction(w/ limited income)

Front 14

Producer choice.

Back 14

Maximising profits