Running head: ECON QUESTION 1 ECON QUESTIONS 5 Econ Questions Name Institution Econ Question Positive Vs Normative Economic Analysis Statements Economics as an academic discipline quite commonly uses idea from media analysts, business consultants as well as advisers on government policy. It is therefore very imperative for an individual to understand instances when economists make objective, evidence-based statements concerning the world works as well as when they are making value judgments on policies issues (Beggs). In this case, economist usually uses positive and normative economic in analysis statements. Positive economic statement can be defined as objective, descriptive and factual statement that can be tested amended or rejected by referring to the available evidenceand that dealwith objective explanation and the testing and rejection of theories. On the other hand, negative economic statement can be referred to as statements that are subjective, prescriptive and value-based statements rather than objective statements. Positive economic statement is therefore objective and fact based, while normative economic statement is subjective and value based. Positive economic statements do not have to be correct, but they must be able to be tested and proved or disproved. Normative economic statements are opinion based, so they cannot be proved or disproved. Other things equal This is a common assumption that is used in economics which is used in identifying the relationship between two different variable; for instance, quantity and price in the law of demand. While doing this, the assumption is used to see how the relationship of the two different variables can be affected by other things. The difference between GNP Vs GDP: show and explain model used for economy. GDP refers to Gross Domestic Product and the total output measured by money of all final goods and services produced by an economy in a country in a given time period (usually one year) (Lidderdale, 2003). On the other hand, GNP refers to Gross National Product which measures the total market value of goods and services produced in a given period of time. GNP also encompasses the value of net income made abroad. Moreover, when calculating GNP, the value of what foreign countries earn in the given country is subtracted from the value. The model used in calculating GNP is Gross national income (GNI) = GDP + (income receipts from the rest of the world) – (income payments to the rest of the world) The four economic resources (explain in detail) and give terms used for the payment of each? The four economic sources include; Land, Labor, Capital, and entrepreneurship. Land is the natural resources such as iron ore, gold, diamonds, oil, etc. while labor is human resources such as wage-earning worker.