1.1

Question 1

opportunity cost

Answer 1

– next best choice

Question 2

positive statement

Answer 2

– can be tested or rejected based off evidence. Tested scientifically

Question 3

normative statement

Answer 3

– expresses an opinion

Question 4

allocative efficiency

Answer 4

– occurs when resources are used to produce the best match for preferences of the population

Question 5

Production possibility frontier

Answer 5

= to depict max productive potential of economy, opportunity cost,economic growth or decline, efficient or inefficient allocation of resources, possible and unobtainable production

Question 6

Productive efficiency

Answer 6

– occurs when total output is maximised so you cant produce more of one good without reducing production of another

Question 7

Specialisation

Answer 7

= production of a limited range of goods by an individual factor of production or firm or country

Question 8

Division of labour

Answer 8

= production process broken down into sequence of tasks

Question 9

Production

Answer 9

= converts inputs into outputs

Question 10

Mixed economy

Answer 10

Resources allocated by free market with gov intervention

Question 11

Pareto efficiency

Answer 11

impossible to reallocate resources without creating less/more of other good

Question 12

PPF

Answer 12

max amount of two goods cmobined able to make sustainably with current production factors

Question 13

efficiency

Answer 13

resources allocated optimally so consumer benefits and waste limited