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Question: please explain why the answer is what it is thanks...

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Please Explain why the answer is what it is. Thanks

1) What is the difference between normative analysis and positive analysis? Briefly explain

2) If the production possibilities frontier is ________, then opportunity costs are constant as more of one good is produced.

a) bowed out b) bowed in c) non-linear d) linear

3) Assume there is a shortage in the market for digital music players. Which of the following statements correctly describes this situation?

a)The demand for digital music players is greater than the supply of digital music players.

b) Some consumers will be unable to obtain digital music players at the market price and will have an incentive to offer to buy the product at a higher price

c) The price of digital music players will rise in response to the shortage; as the price rises the quantity demanded will increase and the quantity supplied will decrease.

d) The shortage will cause a decrease in the equilibrium price of digital music players.

4) Define economic surplus and deadweight loss

5)

Suppose the United Kingdom and Norway both produce oil and fish oil, which are sold for the same prices in both countries. The following table shows the combinations of both goods that each country can produce in a day, measured in thousands of barrels, using the same amounts of capital and labor: UK Norway Oil Fish oil Oil Fish oil 0 4 3 1 4 0 Which country has a comparative advantage in producing oil? Select one a. the UK b. Norway c. None d. Both O

6)

Suppose the United Kingdom and Norway both produce oil and fish oil, which are sold for the same prices in both countries. The following table shows the combinations of both goods that each country can produce in a day, measured in thousands of barrels, using the same amounts of capital and labor: UK Norway Oil Fish oil Oil Fish oil 4 0 Can these two countries gain from trading oil and fish oil with each other? Select one a. Yes b. No c. Only Norway can gain d. Only the UK can gain

7)

Price $20 15 10 0 2 4 6 8 Quantity At a price of $15, Select one: O a. there would be a surplus of 4 units. O b. there would be a shortage of 2 units. O c.there would be a shortage of 6 units. O d. there would be a shortage of 4 units

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