10 Questions
What type of analysis involves analytical thinking about objective facts and cause-and-effect relationships?
Positive analysis
Which type of analysis involves subjective thinking about what should be valued or the course of action to be taken?
Normative analysis
If you want to predict the population of a city in five years based on past data, which method of reasoning would you use?
Inductive reasoning
Which type of reasoning requires assuming factual information and following logical steps to reach a conclusion?
Deductive reasoning
What distinguishes positive and normative analyses?
Objective vs. subjective thinking
What is the principle that states the cost of something is what you give up to get it?
Principle 2: The Cost of Something Is What You Give Up to Get It
Why might pollution regulations, despite yielding benefits, result in reduced profits for firms?
They raise the cost of producing goods and services
In the context of electronic devices, what is the trade-off between processing power and energy efficiency?
Increasing processing power leads to higher energy consumption
What do policies like welfare systems and unemployment insurance aim to achieve?
Redistribute income from the rich to the poor
What does the concept 'Rational People Think at the Margin' refer to?
Incremental change in a specific economic variable
This quiz covers the concepts of positive and normative analysis in economics, focusing on how resources are allocated, production methods, and wealth distribution in society. Test your understanding of objective facts and cause-and-effect relationships versus subjective value judgments.
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