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aimto
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P ROFITS andgovernmentsaimtomaximiseSOCIALWELFARE
underlyingassumptions withceteris
ashuman
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sideration
ahhhhnff.myfemehfYpffghinntyg parliffhhhhhhhhhhhhhhhI
thatsome
variablesremain whilst
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kiiii.EEEEIEE iii
i
statementbased opinion
Normative andhavea value
on
I insane
judgement look words
im
lie for
such oughtorshould as
making policies differenteconomists
caninfluenceeconomicdecision as
makedifferent based
may thesamestatisticpositive
on
9
judgements
Yuffgements
esmeansdecisionsneedtobemadeabout whattoproduceliewhatgoodsservicesshould bemade
Howto produce lieWhat isthe
m ost
efficient
means ofusingtheresources
For whom to
produce i.e are
H ow goods servicesa llocated
amongst consumers
Renewable that
resourcesresources canbereplenishedorreplacedonalevelequaltoconsumption egsolar
power
bereadilyreplacedbynaturalmeansonalevelequaltoconsumption egfossilfuels
Nonrenewableresourcesresourcesthatcannot
UetoSCARCITYCHOICESmustbemadewhichmeansthat thereisanOPPORTUNITYCOST
isthe
cost
Opportunity best
next a lternative whena
forgone ismadelegOpportunitycostofdoinghomeworkisgoingtothecinema
decision
OF
FACTORS PRODUCTION
Capitalman toproduction egfactoriesequipment
aids
made
theability
Enterprise tocombinefactorsofproductiontake
risksinestablishingnewventures
Landnaturalresouries e landmineralsocean
Labourhuman
resources
g
that
services
beproducedwiththeexistinglevelsofresources
can dia9ram
overagiven
can
PPFs
periodotfime
beusedtoshow3differenteconomicconcepts t.am
if ifeng.fi
iiiiitfiii Sisi iithtoutwarass
l t
iii.it
shittinthe
iiiii.iii
good
capital entalongthef.my A inefficientallocationofresourcessome
I L iii YETI moment
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Economic
iiiii
is
growth shown asanoutward
egTheopportunity ofproducingone
cost shifte.gabigger
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force
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satisfaction consumers clothes
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future inthe theproductive
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