Introduction to economics A Positive Statement B Normative Statement C The Economic Problem D Land E Opportunity Cost F Production Possibility Frontier G Specialisation H Division of Labour I Free Market Economy J Capital 1 There are unlimited wants but finite resources 2 When we concentrate on producing a specific product 3 Where the market allocates resources through the price mechanism 4 The breaking down of a production process into smaller tasks 5 Statement that carries a value judgement 6 Goods made that are used to supply other goods 7 The stock of natural resources 8 Shows the maximum potential output combinations of two goods when all resources are employed 9 The cost of the alternative that is given up 10 Statement that can be tested, amended or rejected by referring to the available evidence Match the key phrase (A-J) with their definitions (1-10)

A B C D E F G H I J Positive Statement Statement that can be tested, amended or rejected by referring to the available evidence 10 B Normative Statement Statement that carries a value judgement 5 C The Economic Problem There are unlimited wants but finite resources 1 D Land The stock of natural resources 7 E Opportunity Cost The cost of the alternative that is given up 9 F Production Possibility Frontier Shows the maximum potential output combinations of two goods when all resources are employed 8 G Specialisation When we concentrate on producing a specific product 2 H Division of Labour The breaking down of a production process into smaller tasks 4 I Free Market Economy Where the market allocates resources through the price mechanism 3 J Capital Goods made that are used to supply other goods 6