How is positive economics different from normative economics?
Positive economics describes and analyzes things as they are (or as objectively as they can be seen). Normative economics is about how things ought to be (it explicitly acknowledges the researcher's values).
You might also like to view...
Overexpansion can cause a perfectly competitive firm to ________.
A) produce at a quantity where the market price exceeds the firm's average total cost B) produce at a quantity where the marginal revenue exceeds the firm's average total cost C) earn economic profit D) produce at a quantity where the average total cost exceeds the firm's marginal revenue
The 1981 tax reform act reduced taxes on high-income individuals. Many economists believed that high tax rates would deter high-income individuals from working and investing, thus slowing the growth of income. This illustrates the issue of
a. the equality-efficiency trade-off. b. usury. c. the effects of budget deficits on future generations. d. the cost disease of the public sector. e. the importance of externalities.
The term costs of adjustment refers to the states' intentions to _______________ , which is common in the politics of international finance.
Fill in the blank(s) with the appropriate word(s).
An economy growing at a steady rate of 2.3 percent per year doubles in size approximately every __________ years
A) 50 B) 35 C) 30 D) 43