1 True or False Scarcity exists for poor and wealthy economi

1. True or False Scarcity exists for poor and wealthy economies.

2. What are the factors of production? List and explain.

3. True or False The study of unemployment is a Macroeconomic topic.

4. Write an example of a Normative and Positive statement.

Solution

1) True

Scarcity of resources like fresh water etc exists for both poor and wealthy nations, Wealthy economies overcome this problem by engineering wonders like filtration of sea water or pumping water from far away places

2) Capital, Labor and Resources including land

Capital is no.1 thing for production, If you start any activity you must pay for lot of services and commodities. This will help you to begin with

Labor is also very important without reasonable cost high skilled labor there is nothing much you can do, Labor is very important component

Resources including Land, Water etc are needed for day to day operations of the company, Without which companies might find themselves in cost escalation

3) True:

It is macroeconomic topic, Unemployment is very important measurement of the economy, If unemployment is at 50% you cannot say economic is doing great, It is a macro economic topic for sure

4) No entry without helmet, Please drive your vehicle with safety equipment.