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Positive statement correct answers An objective statement that can be tested, amended or rejected by referring to the available evidence. Normative statement correct answers A value judgement which is a subjective statement of opinion rather than a fact that can be tested by looking at the available evidence Basic Economic Problem correct answers how best to make decisions about the allocation of scarce resources among competing uses so as to maximise human happiness and welfare Factors of Production correct answers the inputs available to supply goods and services. They are classified as land, labour, enterprise and capital Opportunity Costs correct answers a benefit that a person could have received, but gave up, to take another course of action. An alternative given up when a decision is made Ceteris Paribus correct answers a Latin phrase, roughly means "all other things being equal." Microeconomics correct answers a branch of economics that studies the behavior of individuals and firms in making decisions regarding the allocation of limited resources. Macroeconomics correct answers a branch of economics that studies how the aggregate economy behaves. A variety of economy-wide phenomena is thoroughly examined such as, inflation, price levels, rate of growth, national income, gross domestic product and changes in unemployment. hypothesis correct answers a supposition or proposed explanation made on the basis of limited evidence as a starting point for further investigation. capital goods correct answers goods that are used in producing other goods, rather than being bought by consumers. composite demand correct answers Demand for a good that has multiple different uses. e.g. People may demand oil because it can be used to create either petrol or plastics. People may demand wheat for producing bread, biofuels or feeding livestock. margin correct answers the difference between a product or service's selling price and its cost of production Production Possibility Frontier correct answers the maximum possible output combinations of two goods or services an economy can achieve when all resources are fully and efficiently employed. consumption correct answers the use of goods and services by households.