Economics 0.0 / 5 ? Economicsscarcity, choice and opportunity costASWJEC Created by: loiskirkwoodxCreated on: 12-07-19 14:49 what is a normative statemnt? expresses judgments about their opinions. Word such as 'should' or 'ought' 1 of 17 fin what the market mechanism is Allocation of resources through buyers and sellers agreeing on the same price for a product being sold 2 of 17 What is an economic system? resource allocation and distribution of goods and services within a society of given area 3 of 17 What is a capital economy? Focuses on creation of wealth and ownership of capital factors of production 4 of 17 What is a command econpmy? Goverment decides what is produced, for whom and how it is produced 5 of 17 What is a mixed economy? desisions made both by govermnt and individuals 6 of 17 What is a free market? Individuals are left to allocate resourses, decide what is produced and fr whom 7 of 17 What is a positive stament? Statements that can tested. They are more objective and scientific 8 of 17 What are the factors of production? land.labour.capital and enterpise 9 of 17 What is the difference between labour and capital intensive? Capital is machinery used in production over labour, wheras labour is opposite 10 of 17 What type of goods have no opportunity cost? Free goods 11 of 17 What type of goods are scarce meaning they have an opportunity cost? Economic goods 12 of 17 What is economic action? Aiding welfare 13 of 17 What is the differene between finite and infinite? Finite are limited (needs) and infinite are unlimited (wants) 14 of 17 Define opportunity cost The cost of the bes alternative which is foregone when a choice is made 15 of 17 Define scarcity A situation where there are insuffiecient resourses to meet your wants 16 of 17 Define economic problem The fact that resourses are scarce to wants that are unlimited, leading to choices being made 17 of 17
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