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14 Cards in this Set
- Front
- Back
Economics |
Study of choice to employ scarce productive resources, that has alternative uses, to produce other commodities and over time distribute for consumption |
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Wants |
Things people would consume if they have unlimited resources |
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Resources |
Factors of production (like land, labour, physical capital, entrepreneurship) |
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Goods and services |
Refer to anthing that gives a person satisfaction |
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Positive economics |
Describes and explains economic phenomena, focusing on facts and C&E r/s. |
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Positive statement |
Statement of fact. Maybe right or wrong (Must be tested for accuracy) |
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Normative Economics |
Expresses value judgements abt ecnmc fairness / outcm of ecmy / policies |
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Normative statement |
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 |
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Cause of scarcity |
Limited resources and unlimited wants |
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Factors of production/input +mild descrptn |
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 |
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Rational choices |
Compares costs and benefits of alts, choosing one that maximises utility |
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3 decision making units. |
Gov, consumer, producer |
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Consumer choice |
Choice that yields highest satisfaction(w/ limited income) |
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Producer choice. |
Maximising profits |