a statement of fact that can be scientifically tested to see if it is correct or incorrect.

inputs into the production process, land, capital and enterprise

a statement that includes a value judgement and cannot be refuted just by looking at the evidence.

when all those who are able and willing to work are employed.

when a firm's average cost is at the bottom of the average cost curve. Lowest possible cost.

the science that studies society and the relationships of individuals. There is no right or wrong solution.

something that is desirable such as fashionable clothing, that is not necessary for human survival.

a good which is consumed by individuals or households to satisfy their needs or wants.

how best to make the decisions about the allocations of scarce resources among competing uses so as to maximise human happiness and welfare.

when the available economic resources are used to produce the combination of goods and services that best matches people's tastes and preferences.