The Nature of Economics: The Fundamentals (Edexcel A-Level Economics A): Flashcards
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Practise the cards
10 cards from this deck
Economic model
Economic model
Simplified representation of reality
Ceteris paribus meaning
Ceteris paribus meaning
Other things being equal
Positive economic statement
Positive economic statement
Statement about facts that is testable
Normative economic statement
Normative economic statement
Statement involving value judgements about what ought to be
Scarcity definition
Scarcity definition
Finite resources but unlimited wants
Opportunity cost
Opportunity cost
Value of next-best alternative forgone
Three economic agents
Three economic agents
Consumers, producers, government
Four factors of production
Four factors of production
Labour, capital, enterprise, land
Reward for labour
Reward for labour
Wages and salaries
Sustainable development
Sustainable development
Meet present needs without harming future generations' ability