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