Questions

Certainly, let's break down and answer each part of the questions step-by-step.

Question 1a) Positive statement or Normative statement.

ai)

Ans: (2 marks): Identify whether the statement is positive or normative:

• A positive statement is based on factual information and can be tested or verified.
• A normative statement is based on opinions or values and cannot be tested or verified.

(Provide the specific statement to classify here for accuracy).

aii)

Ans: (2 marks): Provide an explanation.

• If the statement can be tested and proven true or false, it is positive.
• If the statement involves value judgments, opinions, or prescriptive language, it is normative.

Question 1b) Opportunity Cost

bi)

Ans: (2 marks): The trade-off is between: A trade-off refers to the decision-making process that involves choosing one benefit over another due to limited resources.

(Provide the specific options being traded off here).

bii)

Ans: (2 marks): The opportunity cost is: Opportunity cost is the value of the next best alternative that is forgone when a decision is made.

(Provide the specific opportunity cost here).

Question 1c): Production Possibility Frontier (PPF)

ci)

Ans: (1 mark): State the production levels for this economy at Point D: (Provide the specific values from Point D here).

cii)

Ans: (2 marks): If the firm is operating at point D, find the total opportunity cost of 2 more computers: The total opportunity cost is: (Provide the calculation or the necessary information to find the opportunity cost here).

ciii & civ)

In the above PPF for computers and mobile phones, the opportunity cost of mobile phones when moving from point D to point B is:

ciii Ans: (2 marks): The total Opportunity cost is (Provide calculation or specific value here). civ Ans: (2 marks): The unit opportunity cost is (Provide calculation or specific value here). (Note: Unit opportunity cost is calculated as the number of units of the foregone product per one additional unit of the other product).

Please provide the specific statements, production levels, or other relevant details so that accurate and specific answers can be given to each part of the question.