Test actions

Question 1

Whats the difference between normative and positive statements??

Answer 1

positive= facts based and can be measured (
normative= subjective and value based

Question 2

What is a free good??

Answer 2

a good that is in such abundance that there is no opportunity cost of ones use to another’s use

Question 3

Define derived demand

Answer 3

demand for a good that is derived from the demand for a good that it makes
-the demand for one good that is derived from the demand of another good

Question 4

What is meant by the term resource allocation

Answer 4

The way in which society’s productive assets are used amongst their alternative uses

Question 5

What is meant by sustainability??

Answer 5

Sustainability means using resources so as not to compromise future generations’ standard or quality of life.

Question 6

Explain how a change from a high yield and productively efficient method to a low yield and productively inefficient method affects scarcity?

Answer 6

using more resources on the new method will result in a fall in output, which means scarcity of these products increases