QUESTION 6

All of the following except one are positive statements. Which is the exception?

1. The government needs to reduce its budget deficit.
2. A decrease in price will lead to a larger quantity bought.
3. Production is subject to the law of increasing costs.
4. The degree of competition in our economy has been increasing in the last ten years.

QUESTION 7

The slope of a straight line is always

1. ;Negative
2. Positive
3. Constant
4. Increasing

QUESTION 8

Below are some production possibilities data for the mystical land of Lhanor.

E Kaldors 16 Bouldings