1.1.1 Economic Methodology

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What is Economics?
It's a study of how humans make decisions when they face scarcity.
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What are the different types of decisions?
Individual, Family, Business and Societal
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What are decisions economic agents make based on?
Political Judgement, Short-term Outcomes, Moral Judgements and Normative Statements.
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What is Scarcity?
This is where our wants and needs are greater than the amount of available resources.
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What are Positive Statements?
- They describe the world as it is.
- They are objective statements that can be proved.
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What are Normative Statements?
- They describe how the world should be.
- They are opinions that contain value judgements.
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Card 2

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What are the different types of decisions?

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Individual, Family, Business and Societal

Card 3

Front

What are decisions economic agents make based on?

Back

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Card 4

Front

What is Scarcity?

Back

Preview of the front of card 4

Card 5

Front

What are Positive Statements?

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