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5 Cards in this Set
- Front
- Back
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Define Economics.
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Economics is the study of scarcity.
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What is scarcity?
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scarcity is the economic problem of having seemingly unlimited human wants, in a world of limited resources.
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What is an opportunity cost?
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The value of the next best alternative that one gives up when making a decision.
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What are positive statements?
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Facts and cause-and-effect relationships. ( What the economy is actually like.)
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What are normative statements?
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Value judgements about what the economy should be like or what particular policy actions should be recommended to achieve a desirable goal. (What the economy ought to be.)
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