A research study on the effects of soft drink consumption on cognitive development is a positive statement, which relies on measurable facts. Scarcity necessitates trade-offs as resources are limited, leading individuals to make choices on their budget constraint. Comparative advantage and the PPF are economic concepts that describe efficient resource allocation and potential output.
A research study on the effects of soft drink consumption on children's cognitive development would be a positive statement, as it is based on observable and measurable facts. Scarcity leads to trade-offs because resources are limited, and thus not all needs and wants can be satisfied, forcing choices to be made. Individuals make choices on the budget constraint to fully utilize their resources without exceeding them, unlike choices inside or outside the budget constraint which either underutilize resources or are unattainable.
The concept of comparative advantage refers to the ability of a party to produce a good or service at a lower opportunity cost than another. A production possibilities frontier (PPF) illustrates the maximum possible output combinations for two products that an economy can produce given its resources and technology. The PPF is drawn as a curve rather than a straight line because it reflects the law of increasing opportunity costs; as the production of one good increases, more of the other good must be given up.