67.What is the difference between positive and normative economics? How can knowledge of positive economics be useful in normative economics?

68.Interpret what an increase in demand and an increase in supply mean. Discuss the causes of an increase in demand and an increase in supply. How are increases in demand and supply expressed graphically?

69.What is scarcity and why does it exist? How is scarcity related to the study of economics?

70.Graphically express a production possibilities curve. What do points on, inside and outside the curve represent? What does a rightward shift of the curve represent? How is economic growth expressed in terms of the production possibilities model?

71.Discuss how a market reaches equilibrium. How is it expressed graphically?

72.Why are all costs really "opportunity costs"?

73.Distinguish the laws of demand and supply. How are the laws of demand and supply illustrated graphically?

74.Discuss the three fundamental economic questions that all nations must address.

75.Distinguish macroeconomics and microeconomics.

Three economic questions must be determined in all societies. What are they? ()a) What is the opportunity cost of production? Does the society have a comparative advantage in production? Will consumers desire the goods being produced? O b) What goods will be produced? How will goods be produced? For whom will goods be produced? ( c) What will the price of each good be? Who will produce each good? Who will consume each good? d) How much will be produced? When will it be produced? How much will it cost? How do microeconomics and macroeconomics differ? ()a) Microeconomics studies aggregate decision making, while macroeconomics examines individual decision making- (b) Microeconomics utilizes positive economic analysis, while macroeconomics utilizes normative economic analysis. c) Microeconomics is concerned with consumer behaviour, while macroeconomics is concerned with firm behaviour. ()d) Microeconomics studies individual decision making, while macroeconomics examines aggregate decision making.2. Palm restaurants are considered the gold standard for steak houses, with over 25 global locations, most in the U.S. The menu is the same at all locations, but prices may differ. For example, in 2011, the price of a 9-ounce filet in one of the New York locations was $43, whereas in San Antonio, it was $41. You are an analyst that has been tasked with providing the fundamental economics underlying Palm's business. Note that this is an example of 3rd degree price discrimination, since the customers are identified by certain characteristics, namely, whether they are eating in New York or San Antonio