Theme 1.1

• Economics is a social science as it involves the study of human behaviour and the way that individuals and societies make choices.
• Ceteris Paribus:

  Means all other things being equal

  We use ceteri paribus to single out and one cause and its effects
• economists can NOT make scientific experiments as Controlled laboratory tests aren't possible. In real life, economists can't keep variables constant.
• Value Judgments:

  We can use a combination of last experiences and prediction. As no two people have identical experiences our predictions will also vary
• Sarcity has created a field in economics as the demand for a good or service is greater than the availability of the good or service. 
• non-renewable resources are finite

  Examples being:

  fossil fuels

  oil

  gas

  coal
• renewable sources is replen naturally or can be sustained

  solar energy

  wind energy

  geothermal energy

  tidal energy
• Consumer goods:

  Are goods used by a consumer user

  Examples:

  Shoes, clothes, holidays
• Capital goods: Are goods ysed to make consume goods

  Examples: Ovens, spatulas, tills, trays