Nature of economics

Pos/norm statements, economic problem, ppfs, social sciences, division of labour, specialisation, rational decision making

Define social sciences

The scientific study of societies and social interaction.

Define CETERIS PARIBUS

All other things held constant

Define a Positive statement

A statement that can be test using evidence to see if it’s true or false

Define a Normative statement

A statement that cannot be tested against. A value judgement.

Define an Economy

A system that tries to solve the economic problem

Recall and define all factors of production

Land- All the earth's natural resources i.e. physical land but also raw materials

Labour- humand workers used to produce a good

Capital- machinery and things used to make the goods, they aren’t sold themselves

Enterprise- person that organises the factors of production

Define renewable and non-renewable resources

Renewable- can replenish it short periods

Non-renewable- cannot replenish itself, millions of years