test

Question 1

ppf

Answer 1

production possibility frontier
- max potential ouput combinations
-of two goods ( cap good, consumer goods)
-and economy can achieve when all recources are fully utilized

Question 2

normative

Answer 2

Value judgement, cannot be tested true or false and is not based of statistic/fact

Question 3

positive

Answer 3

Fact/statistic based statement
can be tested true/false

Question 4

ceteris paribus

Answer 4

Ceteris paribus means “all other things being equal,” used to isolate the effect of one variable while assuming everything else stays constant.

Question 5

scarcity

Answer 5

finitive recourse, unlimited human want