Economics · Topic Cheatsheet
Unit 1 · Introduction to Economics
6 key results accumulated across 1 chapter.
Scarcity
Ch 1
Finite resources vs unlimited wants → choices must be made.
Opportunity cost
Ch 1
Value of the next-best alternative forgone.
Factors of production
Ch 1
Land, labour, capital, entrepreneurship.
Three questions
Ch 1
What to produce? How? For whom?
PPC
Ch 1
On curve = efficient · inside = inefficient · outside = unattainable. Slope = opportunity cost.
Positive vs normative
Ch 1
Positive = testable fact; normative = value judgement ('should').