Microeconomics 3.1.1: The Economic Problem

A kind of statement that can be proved right or wrong.
Positive
1 of 14
A kind of statement that is based on an opinion.
Normative
2 of 14
These influence economic decision making and government policy.
Value Judgements
3 of 14
The economic problem exists because there are a finite amount of these.
Resources
4 of 14
The economic problem exists because there are an infinite amount of these.
Wants
5 of 14
Something, often money or a prize, offered to make someone behave in a particular way.
Incentive
6 of 14
Unemployed resources means that an economy is being this.
Inefficient
7 of 14
The cost of the next best alternative forgone.
Opportunity Cost
8 of 14
An economic resource.
Land
9 of 14
An economic resource.
Labour
10 of 14
An economic resource.
Capital
11 of 14
An economic resource.
Enterprise
12 of 14
If an economy devotes more resources to producing one good, yet capital remains constant; this law will apply.
Diminishing Returns
13 of 14
The expansion of productive capacity is known as...
Economic Growth
14 of 14

Other cards in this set

Card 2

Front

A kind of statement that is based on an opinion.

Back

Normative

Card 3

Front

These influence economic decision making and government policy.

Back

Preview of the front of card 3

Card 4

Front

The economic problem exists because there are a finite amount of these.

Back

Preview of the front of card 4

Card 5

Front

The economic problem exists because there are an infinite amount of these.

Back

Preview of the front of card 5
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