1.1.1 + 1.1.2 social science + positive/normative statements

Economics

a social science that studies human behaviour under scarcity

Scarcity

describes a situation in which factors of production (CELL) are finite, whereas wants are infinite

Ceteris Paribus

a latin expression that means ‘other things equal’, another of saying that any other factors are assumed to be constant

Consumers

those who demand goods and services

Producers

those who supply goods and services

Government

those who tax and distribute certain goods and services to both consumers and producers

Positive Statements

statements that can be tested to be true or false and are not based on value judgements

Normative statements

statements that cannot be tested to be true or false as they are based on value judgements