BE Q2

1) Positive economics' goal is to study what are the actual problems and
how the problems are actually solved which are all based on facts and
reality. Normative economics on the other hand is about how the
problems should be solved based on opinions and judgments. Positive
economics is more on how the world actually works while normative
economics is more on how the world should be.

2) If we know how to analyze ppf, we can also know and identify the
opportunity cost and we would be able to see that there is really a
scarcity. Through it, we can also see what are the available resources
and technologies on the possibility productions.

3) The circular flow of income is about the flow of goods and services.
On the other hand, expenditures are the purchases of goods and
services. Those would be consumption, investments, import and
exports, and government spending on goods and services. So
basically, their main difference is that the circular flow of income is
just the flow of goods and services while the expenditures are the
actual purchase.