5 Questions
Which type of economic principle predicts how people will behave?
Positive economic principle
Which field of study focuses on how the allocation of resources affects economic wellbeing?
Welfare economics
What does market efficiency use welfare economics to assess?
The equilibrium price and quantity in a competitive market
What does consumer surplus measure?
Economic welfare from the buyers side
What does willingness to pay represent?
The maximum amount that a buyer will pay
Test your knowledge on normative vs positive analysis, market efficiency, and welfare economics with this quiz. Explore the principles that guide economic behavior and assess the welfare implications of competitive market equilibrium.
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