Question1: Consider the following statement.

A bumper harvest due to good weather conditions has increased the supply of tomatoes and the price of tomatoes at supermarkets has fallen 10%.

Is this statement an example of microeconomics or macroeconomics?Briefly explain why.

Is this a positive or a normative statement?Briefly explain why.

Question 2

The process of making a bottle of tomato sauce takes a number of stages that involve the factors of production.Provide one example each of land, labour and capital that are used in the production of tomato sauce.

Question 3

Are goods developed by the government like roads, schools and new infrastructure for communications an example of land, labour or capital?Explain your answer