1.1 Nature of Economics 0.0 / 5 ? EconomicsNature of economicsASEdexcel Created by: tomstodd23Created on: 18-01-18 11:19 Social Science The study of people and their decisions. 1 of 18 Utility The satisfaction you gain from the consumption of a good or service. 2 of 18 The difference between wants and needs A need is something you can't live without whilst a want is a unnecessary desire. 3 of 18 Basic Economic Problem People's wants are unlimited but resources to satisfy these wants are limited. 4 of 18 Opportunity Cost The value of the next best alternative foregone. 5 of 18 Free Good A good that people can consume without reducing the amount available for others to consume. 6 of 18 Positive Statements Objective statements that can be tested, amended or rejected by referring to the available evidence. 7 of 18 Normative Statements Subjective statements that carry value judgements-not facts- based on the available evidence. 8 of 18 What does a production possibilities frontier (PPF) illustrate? The trade-offs facing an economy that produces only two goods. 9 of 18 Money Functions A medium of exchange; A measure of value; A store of value; A method of deferred payment. 10 of 18 A measure of value Can use money to put a value on something. 11 of 18 A medium of exchange Allows people to buy and sell goods. 12 of 18 A store of value Keep money and only spend it when you need it. 13 of 18 A method of deferred payment Money is of consistent value. 14 of 18 Economic Agents Consumers, Government, Firms, Workers. 15 of 18 Division of Labour Dividing the production process into different stages enables workers to focus on specific tasks. 16 of 18 Advantages of division of labour More efficient; Workers don't get in each other's way; Output increased. 17 of 18 Disadvantages of division of labour Staff could get bored; High labour turnover; Difficult to motivate. 18 of 18
Analyse how the macroeconomic problems outlined above would be approached by Keynesian economists 0.0 / 5
Comments
No comments have yet been made