A positive statement is an objective claim based on facts that can be tested or verified as true
Glossary Category: Basic Economics Ideas
short run
at least one variable/factor is fixed, e.g. physical capitals such as size of factory, so the response to
normative statement
A positive statement is a statement based on facts that can be tested or verified as true or
opportunity cost
the cost in terms of the next best alternative foregone
three basic questions
The basic economic questions are what to produce (the selection), how to produce (the methods) and how to
Scarcity
Scarcity results from limited resources and unlimited wants. This means choice is necessary and an opportunity cost occurs.