2.1 Measures of economic performance

Question 1

What is scarcity and choice?

Answer 1

We don’t have unlimited choice, time and resources.

Question 2

What is positive economics?

Answer 2

Something that can be proven and are true.

Question 3

What is normative economics?

Answer 3

Statements which are open and are opinions.

Question 4

What is market value?

Answer 4

The price paid by consumers (less VAT)

Question 5

What are the 4 parts of the circular flow?

Answer 5

Households
Firms
Government
External sector

Question 6

What are the impacts on the following if GDP increases?
Jobs
Prices
International Trade
Standard of living
Public services
Enviroment