Economic methodology

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  • Created by: amyclaire
  • Created on: 12-03-17 17:58
Opportunity Cost
The cost of the next best option which has been forgone (the thing you give up)
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The Economic Problem
How best to allocate resources amongst competing uses
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Economic goods
Goods that are scarce and involve opportunity cost
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Free goods
Goods which have no opportunity cost
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Division of labour
Dividing up of the production process into clearly separate roles and encouraging workers to specialise in a particular role
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Capital goods
Goods used to produce other goods such as consumer goods (those used by consumers to meet needs)
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Positive Statements
Can be proven to be true or false, can be refuted by evidence
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Normative Statements
Cannot be supported or refuted, opinions about how economics and markets should work 'should' 'ought'
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Other cards in this set

Card 2

Front

How best to allocate resources amongst competing uses

Back

The Economic Problem

Card 3

Front

Goods that are scarce and involve opportunity cost

Back

Preview of the back of card 3

Card 4

Front

Goods which have no opportunity cost

Back

Preview of the back of card 4

Card 5

Front

Dividing up of the production process into clearly separate roles and encouraging workers to specialise in a particular role

Back

Preview of the back of card 5
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