Share Economics AS level Chapters 1 and 2
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What is the basic economic problem?
Wants are unlimited but resources are scarce
What does 'ceteris paribus' mean?
All other things are equal
How does ceteris paribus help in economics
To simplify conditions and make assumptions
What are positive economic statement?
Statements that can be proven to be true or false
What are normative economic statements?
Statements that are based on value judgement and can't be proven to be true or false
What does PPF stand for?
Production possibility frontiers
Give an example of normative economic statement
Give an example of positive economic statement
What does production possibility curve show?
The maximum number of goods that can be produced with all the given resources
What does scarcity mean?
Limited amount/number of something
What does economics study?
Allocation of scarce resources
Name factors of production
Land, labor, capital, entrepreneurship
What is opportunity cost?
Cost of the next best alternative foregone when making a choice
Give an example of opportunity cost
What are capital goods?
Products that are bought by other companies to produce other goods
What are consumer goods?
Products that are bought by households and individuals
