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Questions and Answers
What is the main focus of positive economics?
What is the main focus of positive economics?
- Explaining how the economy actually works (correct)
- Studying the economy's production, distribution, and consumption
- Offering prescriptions on how the economy should work
- Describing the economy as it should be
Which type of economy involves individual producers and consumers making decisions?
Which type of economy involves individual producers and consumers making decisions?
- Command Economy
- Traditional Economy
- Mixed Economy
- Market Economy (correct)
What is the main characteristic of a Command Economy?
What is the main characteristic of a Command Economy?
- Efficiency in allocation
- Individuals make all economic decisions
- Central authority makes decisions (correct)
- Increased economic growth
What is the term for the study of marginal decisions?
What is the term for the study of marginal decisions?
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What does the principle of 'opportunity cost' refer to?
What does the principle of 'opportunity cost' refer to?
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In economics, what do incentives aim to do?
In economics, what do incentives aim to do?
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What principle states that markets usually lead to efficiency?
What principle states that markets usually lead to efficiency?
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'Reciprocal relationship between costs and benefits' implies that:
'Reciprocal relationship between costs and benefits' implies that:
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'Gains from Trade' concept emphasizes that:
'Gains from Trade' concept emphasizes that:
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What is the main role of the Invisible Hand principle in economics?
What is the main role of the Invisible Hand principle in economics?
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