Economics methodology and the economics problem
- Created by: Bert1300
- Created on: 07-06-20 11:41
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- Economics methodology and the economic problem
- Economics methodology
- Economics is a social science (study of people)
- Normative statements are subjective
- Positive statements can be tested against facts
- The nature and purpose of economic activity
- Need is essential for human survival
- Want is a desire for which standard of living is perceived to be improved
- Economics welfare is the well being of a individual or group in society
- Economics resources
- Captital
- Land
- Labour
- Enterprise
- Basic economic problem
- Scarce resources and unlimited resources
- Choices must be made
- 3 fundamental questions
- WHAT?
- FOR WHOM?
- HOW?
- Scarce resources and unlimited resources
- Opportunity cost
- The cost of the next best forgone alternative
- Economics goods have an opportunity cost
- Free goods have not opportunity cost
- PPFs
- Shows the maximum possible outputs of producing two goods
- Economic growth is an increase in the productive potential of the economy.
- Outward shift
- Increase in workforce
- New resource discovery
- Improvements in education
- Tech improvements
- Inward shift
- War
- Natural disaster
- Global warming
- prolonged recession
- Outward shift
- Productive efficient - all resources being used to produce maximum amount of goods
- Economics methodology
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