Ceteris Paribus is a Latin phrase which literally translates to “holding other things constant”. Petrus Olivi was the first person to use the term with an economic context in 1295. In economics, this phrase is used to mean “all else being equal.”
The best way to show a country’s available resources, along with the maximum two goods produced from those resources, is by calculating the production possibilities frontier (PPF).
A country’s economic development is usually indicated by an increase in citizens’ quality of life. ‘Quality of life’ is often measured using the Human Development Index, which is an economic model that considers intrinsic personal factors not considered in economic growth, such as literacy rates, life expectancy, and poverty rates.
The term “inferior good” describes a good for which demand decrease as incomes increase. They are the opposite of “normal goods,” which are goods for which demand increases as incomes increase.
A normative statement carries judgment. Normative statements are opinions. They are subjective statements.