Podcast
Questions and Answers
The traditional theory of economics has been established along three approaches, i.e., normative, positive, and descriptive?
The traditional theory of economics has been established along three approaches, i.e., normative, positive, and descriptive?
False
The normative approach in economics is concerned with what 'should be' or 'ought to be'?
The normative approach in economics is concerned with what 'should be' or 'ought to be'?
True
The main focus in the long run analysis is on the planning period where all inputs are fixed.
The main focus in the long run analysis is on the planning period where all inputs are fixed.
False
The traditional theory of economics has been established along two approaches, i.e., normative and positive?
The traditional theory of economics has been established along two approaches, i.e., normative and positive?
Signup and view all the answers
The positive approach in economics is concerned with what 'should be' or 'ought to be'?
The positive approach in economics is concerned with what 'should be' or 'ought to be'?
Signup and view all the answers
The normative approach in economics is concerned with what 'should be' or 'ought to be'.
The normative approach in economics is concerned with what 'should be' or 'ought to be'.
Signup and view all the answers
The positive approach in economics is concerned with what 'should be' or 'ought to be'.
The positive approach in economics is concerned with what 'should be' or 'ought to be'.
Signup and view all the answers
The traditional theory of economics has been established along three approaches, i.e., normative, positive, and descriptive.
The traditional theory of economics has been established along three approaches, i.e., normative, positive, and descriptive.
Signup and view all the answers
Macroeconomics is purely theoretical and analyzes occurrences under unrealistic assumption?
Macroeconomics is purely theoretical and analyzes occurrences under unrealistic assumption?
Signup and view all the answers
The traditional theory of economics has been established along two approaches, i.e., normative and positive?
The traditional theory of economics has been established along two approaches, i.e., normative and positive?
Signup and view all the answers
The normative approach in economics is concerned with what 'should be' or 'ought to be'?
The normative approach in economics is concerned with what 'should be' or 'ought to be'?
Signup and view all the answers
The main focus in the long run analysis is on the planning period where all inputs are fixed?
The main focus in the long run analysis is on the planning period where all inputs are fixed?
Signup and view all the answers
Study Notes
Approaches to Economics
- Traditional theory of economics is established along two approaches: normative and positive.
- Normative approach concerns what 'should be' or 'ought to be' in economic scenarios.
- Positive approach is concerned with what 'is' or 'exists' in economic scenarios, rather than what 'should be'.
Analysis Timeframes
- Long run analysis focuses on the planning period where all inputs are variable, not fixed.
Macroeconomics
- Macroeconomics is not purely theoretical and does not analyze occurrences under unrealistic assumptions.
Key Points
- There is no descriptive approach in traditional economics theory.
- Traditional theory of economics is not established along three approaches: normative, positive, and descriptive.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Description
Test your understanding of the traditional theory of economics, which is based on the normative and positive approaches. Explore the differences between these two approaches and their implications in economic analysis.
