Chapter 1 !!!!

Question 1

Scarcity

Answer 1

Scarcity occurs when there is an excess of human wants over what can actually be produced to fulfil these wants

Question 2

Opportunity cost

Answer 2

Opportunity cost refers to the real cost of anything that is forgone in order to obtain more of something else

Opportunity cost refers to the value of next-best alternative forgone as a result of a decision made.

Question 3

Positive statement

Answer 3

A positive statement is an objective and fact-based statement that can be measured or tested by appealing to the facts

Question 4

Normative statement

Answer 4

A normative statement expresses a value judgment, originating from personal opinions which cannot be tested by facts.

Question 5

PPC

Answer 5

The production possibility curve shows the maximum attainable combination of goods that can be produced in an economy, when resources are fully and efficiently employed, at a given state of technology