Seminar mt445

Discuss the difference between normative economic analysis and positive economic analysis. Is economics concerned mainly with normative or positive analysis? Briefly explain.

Discuss the concept of scarcity. Can you think of anything that is not scarce according to the economic definition? How might governments reduce scarcity?

Discuss the significance of the production possibilities frontier. How can economies achieve points of production that lie outside the curve? What might cause an economy to produce at points beneath the curve?