1. .

2. .
3. More employee means increasing production / Factors of production: the resources the economy
uses to produce goods and services including labor, land… - D is the only one mentions to labor
4. Voluntarily spending money to serve her own activity
5. Note: rebate - an amount of money that is paid back to you after you have paid too much
Circular-flow diagram
6. Circular-flow diagram
7. Production possibilities frontier PPF is a graph that shows the combinations of two goods the
economy can possibly produce given the available resources and the available technology – no
mentions to income - > A
8. “a” will lead to a decrease in the production, which results in the inward shift, not outward
9. .
10. A is under the PPF, which means some resources are underutilized (not used efficiently) ->
employment
11. B is On the PPF -> contrary to 10 – all resources are fully utilized
12. ?
13. PPF definition
14. Overall performance of an economy -> macro
15. National economic growth -> macro
16. National inflation -> macro
17. Scientist – positive – describe sth as it be, policy adviser – normative – how sth should be
18. Definition of positive statement
19. .
20. Positive economics is the branch of economics that concerns the description, quantification and
explanation of economic phenomena. It focuses on facts and cause-and-effect behavioral
relationships and notes that economic theories must be consistent with existing observations
B is not an economic phenomenon
21. D – decrease/increase clothing, increase/decrease food
22. 25-20
23. .
24. 10-20
25. A because a positive correlation is a relationship between two variables in which both variables
move in the same direction
26. B – the number of rainy days increases – less sunny days – suntan lotion’s sales decrease
27. a