10 Questions
What is the primary focus of applied economics?
Applying economic principles to real-world situations
Which of the following is a key characteristic of positive economics?
It relies on objective analysis of data
Which of the following is an example of a positive economic statement?
Parents tend to enroll their children in private schools more when they get a raise or promotion
Which of the following statements best describes the difference between positive and normative economics?
Positive economics deals with what is, while normative economics deals with what ought to be
What is the primary purpose of the scientific method in economics?
To test hypotheses and answer economic questions
What is the key distinction between positive and normative economics?
Positive economics focuses on how the world is, while normative economics focuses on how the world should be.
Why are normative economic statements difficult to test?
They are based on opinions rather than empirical data.
What does Gross National Product (GNP) measure?
The total income earned by a country's citizens, including income from abroad.
Which of the following is an example of a normative economic statement?
The government should raise the minimum wage to $15 per hour.
How does Gross National Product (GNP) differ from Gross Domestic Product (GDP)?
GNP includes income earned from assets abroad, while GDP does not.
Explore the principles and theories of economics and their practical application in real-world scenarios. Learn how to forecast outcomes and make informed decisions by utilizing economic theory and past events. This field helps individuals, businesses, and policy makers analyze how resources are utilized to achieve goals.
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