1. Introduction to economicsA
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)

2. 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