Instructions: Answer ALL
Questions. Include referencing where additional sources have been used. APA format is recommended
Question 1 a. Explain why scarcity leads to tradeoffs.
b. What is the difference between positive and normative analysis? Which of the following statements would entail positive analysis, and which normative analysis?
i. Internet auction companies will erode the profits of local automobile dealerships.
ii. The government should impose special taxes on sales of merchandise made over the Internet.
c. Why is the circular flow model important?
