The problem of allocating scarce/ limited resources to forfill peoples needs and wants
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Economic model
An economic model is a hypothetical construct that embodies economic procedures using a set of variables in logical and/or quantitative correlations.
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Cetris Paribus
with other conditions remaining the same; other things being equal
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Positive Statement and example
a statement which can be tested with evidence. EG, •A fall in incomes will lead to a rise in demand for own-label supermarket foods.
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Normative statement and example
It is a value judgement the can be subject to opinion. EG, •Pollution is the most serious economic problem.
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Land and Example
the resource that encompasses the natural resources used in production. EG, an area where a firm produces it output
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Capital and example
capital consists of an asset that can enhance one's power to perform economically useful work. EG, a computer compared to a typewriter
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Enterprise
Organise the factors of production, sometimes at a risk, even using their own money.
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Labour
The human input into a production process
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Renewable resources and example
A renewable resource is a substance of economic value that can be replaced or replenished in the same or less amount of time as it takes to draw the supply down. EG Solar energy
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Non- Renewable resources and example
A non-renewable resource (also called a finite resource) is a resource that does not renew itself at a sufficient rate for sustainable economic extraction in meaningful human time-frames. EG oil
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Other cards in this set
Card 2
Front
Economic model
Back
An economic model is a hypothetical construct that embodies economic procedures using a set of variables in logical and/or quantitative correlations.
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