1. The document discusses various economic concepts including opportunity cost, price mechanism, full employment, and consumer choice.
2. Several statements are provided as examples of positive and normative statements and explanations are given for whether each statement is positive or normative.
3. Consumer behavior is discussed in the context of habits, social norms, and rational decision making. The role of private sector in providing choices for consumers in a market economy is also covered.
1. The document discusses various economic concepts including opportunity cost, price mechanism, full employment, and consumer choice.
2. Several statements are provided as examples of positive and normative statements and explanations are given for whether each statement is positive or normative.
3. Consumer behavior is discussed in the context of habits, social norms, and rational decision making. The role of private sector in providing choices for consumers in a market economy is also covered.
1. The document discusses various economic concepts including opportunity cost, price mechanism, full employment, and consumer choice.
2. Several statements are provided as examples of positive and normative statements and explanations are given for whether each statement is positive or normative.
3. Consumer behavior is discussed in the context of habits, social norms, and rational decision making. The role of private sector in providing choices for consumers in a market economy is also covered.
explanation :AC is wmDg Since résources are imitec and erefore the Sappliu gaocds and services is inte. ASresocutcesa r e SCare Consumersproducets and negerOEOt ihaeitonake a_cboiceof wnat tobAy peduce_ar to finanCe
02) A explanahon.: Diision o labaur is nern dhe prcds tion
procesisspit up into differernE tashs, ardcach
or kerperforms one individual: aski C is iotonq becáuse Deproduction cost usad folaswortersuould be more specialized i at aaildinq neoboices:n is also oLAAA a Sice tberanoe O skiNs requirecd sould be ess by each: ofker as heu uld onlu be pecforcing one. HOsk
explanatio: A_positivestademeOt js oDe_ulhich cgn be
poven to be trLe orfalseStalement 4 is apositie Stotenment siOcei ean E eiclenceCen be gtheed to Support Oroppose tne Statement. Stateroent 2i9 oorometi Scerment eecause Coddisplay vieLoint_or judgment of a hich inCoMe_eaiOer. wben b e outpu and eplanahion : cconomic graoth is _economuincreases Optioo ZA kivinqStandards inan fellio etonomic_groto - Soronq as t displays a because it shois Ca recessiao). Oelion D isoconq an onon0umoinq fam fub emploumen a SAAph unernelayeoent:_
beretit proven Statement i s a statement 2zert hat can be 3tetemen o be tnue o false: Shatement 1 s a postlve tbecause Statis tics ad repocts an be catected ta pEeLeS prove or denu anis stalement Statement 2is a emcfive Stateroent_since those uoithincome aver
S,ooo would consder So1 ax upfaic _Lshereas
nose income less than_$S,0oo sosild cCoOsid
-er this feir
The orportunity eost is the neet best alterma t v e forqene.
explanation As he economis aperatinq at point X the producioeot15eseaieneE geaels oeesrunity cost uiuld. 6apita goods: D 'is urongSince 15 uniis oret ConSumer qoods uoulod be produce cdanddhere£ore it ann. -ot be the opportunity cast B
expanafion: Prisemecanise is uhere inefcs CeSof
demand and Supply deieroine Ahepniceof_an item A iswrong4essiOCe_f.ne-PLiceof. 00Cos procucedincxeasesbusinESsess _uooud o t uam 1o eit as theu mre on opeor tturnit_toarn. higner protts. Tne pnce_mechaniso enatsiS6 keep the pcce tr equillertum level 9 thot ConSroers and. sellerS Couldd agree to trodde
eplonotion: B isLAconq as Ncdsplays full émployment
C is incomect because the opportuniy COSt ot prrduciNg
18 consumer geads is80 Capital geods
LA iS adso Oroa aS heOPgorhunta castot _preducing So Consumer gcods is copltalgeocds
6a) Congirners oau not be Otional due to sOCial
normt hey de balefs that teNSindiuicdualk ha to
bebave eq:it oau becoosiderc a trend o wear la cestain iECe t clo but some pcople mau t agree w 3ince i's a trend pe He i bu folloo it cnuu0
Due to babits, theygie sbactcuH in decision
maing uch as eddit addicts_ 20ce hey nare xery tle self Control
wnere some ptoctte-etne
e PRce compansans Sameproducts at_differcOr StorEe_ HexenE M_ot the woudrot use he ave differert piceS: MOst pecple Hme and ettr to calculate which s more Lgorthn 1hem. and May pucbdse eiber one Ct (jo) In a maket ecoDomy thee i s a vaneu et choices for ConsunneSto dhonse om because tte povate 9ecor pIcuys a mator Oe his then meaps ibtit fiOs have agreatex chance earringprofits resuHingin multipebusinessess enAeong a mare and therefoe enablinqCans umerS Ao cheose fesm lunCh busoeShe t r ld uaOt topurchose from