Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
13 Cards in this Set
- Front
- Back
|
What are economic goods |
A product or service which can command a price when sold |
|
|
What are free goods |
A resource such as air, that its availability is not a constraint on economic activity |
|
|
The basic economic problem |
There are unlimited wants but limited resources |
|
|
What are the implications of the basic economic problem |
Y |
|
|
Positive statement |
They are objective statements that can be tested, ammended, or rejected by refering to the available evidence |
|
|
Normative statement |
They are subjective statements i.e. opinions rather than facts |
|
|
What is the difference between needs and wants |
Needs are necessities such as basic food, clothing and water. Whereas wants are products which are desirable such as luxury good. |
|
|
What is meant by scarcity |
Resources are finite whilst societies wants are infinite. |
|
|
What is the role of economic agents: households |
Households: provide labour and are rewarded through wages/pay, which is then spent on goods. |
|
|
What are the roles of economic agents: firms |
Their role is to transform factors of production into goods and services to sell |
|
|
What is the role of economic agents: government |
Provides rules for how firms and consumers/households should interact (legislation). |
|
|
What are the factors of production |
Capital Land Labour Entrepreneurship |
|
|
What are the reward for each factor of production |
Enterpreneurship - profit Capital - interest Land - rent Labour - wages |
