3. Define scarcity, choice and opportunity cost. Can you link them in your day to day lives? 4. What do you understand by positive economics and normative economics?
5. Explain why economics deals with allocation and efficient utilization of scarce resources
only?
6. In recent years, especially around big cities, there is the problem of air pollution and the
likelihood of poisoning is high. Given this scenario, do you think that air is free resource?
Justify your answer.
7. Describe the four categories of economic resources. Which category of resources you and
your family owned?
8. What is a production possibility curve?
9. Discuss the economic system in Ethiopia over the recent three regimes (EPRDF. Derg and
imperial regime)
10. What are the central problems of an economy? Discuss them in detail.
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