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Rearrange The Following Letters ND Identify The Economic Concept - Toscunitpopyrt - Ductioprossibilityp - Tivemaorn - Osiptive - Tarpial - Arcarcitys

The document rearranges letters in words to form economic concepts and provides explanations and examples of each concept. The concepts are: opportunity cost, production possibility curve, normative economics, positive economics, partial equilibrium, and scarcity. It explains that opportunity cost refers to the next best alternative forgone when making a choice given limited resources. The production possibility curve depicts maximum output possibilities given inputs. Normative economics involves subjective statements that cannot be proven, while positive economics makes objective statements that can be tested. Partial equilibrium analyzes a restricted part of the market holding other prices fixed. Scarcity arises from limited resources and unlimited wants.

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Kirthi Rk
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25 views2 pages

Rearrange The Following Letters ND Identify The Economic Concept - Toscunitpopyrt - Ductioprossibilityp - Tivemaorn - Osiptive - Tarpial - Arcarcitys

The document rearranges letters in words to form economic concepts and provides explanations and examples of each concept. The concepts are: opportunity cost, production possibility curve, normative economics, positive economics, partial equilibrium, and scarcity. It explains that opportunity cost refers to the next best alternative forgone when making a choice given limited resources. The production possibility curve depicts maximum output possibilities given inputs. Normative economics involves subjective statements that cannot be proven, while positive economics makes objective statements that can be tested. Partial equilibrium analyzes a restricted part of the market holding other prices fixed. Scarcity arises from limited resources and unlimited wants.

Uploaded by

Kirthi Rk
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Rearrange the following letters nd identify the economic concept

Toscunitpopyrt
Ductioprossibilityp
Tivemaorn
Osiptive
tarpial
Arcarcitys

Explain with example

The opportunity cost of a choice is the value of the best alternative forgone, in a situation in
which a choice needs to be made between several mutually exclusive alternatives given
limited resources Assuming the best choice is made, it is the "cost" incurred by not enjoying
the benefit that would be had by taking the second best choice available. Eg: choice of job
Production possibility curve is a curve depicting all maximum output possibilities for two or
more goods given a set of inputs (resources, labor, etc.). It determines the options available
subject to limited resources. Eg: land/labour, food/clothing
Normative economics is subjective, value and opinion based, so they cannot be proved or
disproved based. For eg, "government should provide basic healthcare to all citizens" is a
normative economic statement. There is no way to prove whether government "should"
provide healthcare; this statement is based on opinions about the role of government in
individuals' lives.

Positive economics is objective and fact based they must be able to be tested and proved or
disproved. For eg, The "government-provided healthcare increases public expenditures" is a
positive economic statement, because it can be proved or disproved by examining healthcare
spending data where the government provides healthcare.

Partial equilibrium is a condition of economic equilibrium which takes into consideration
only a part of the market based on only a restricted range of data, a standard example is price
of a single product, the prices of all other products being held fixed during the analysis to
attain equilibrium. Eg: rise in diesel price

Scarcity is a problem that arises because people have unlimited wants but resources are
limited. It refers to limitations--limited goods or services, limited time, or limited abilities to
achieve the desired ends
Eg: basic raw material, land, labor, capital.

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