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 (B)
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 (A)
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 (B)
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?
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'?
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'.
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'.
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.
Macroeconomics is purely theoretical and analyzes occurrences under unrealistic assumption?
Macroeconomics is purely theoretical and analyzes occurrences under unrealistic assumption?
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?
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'?
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?
Flashcards
Normative Economics
Normative Economics
This approach focuses on what "should be" or "ought to be" in economic situations. It deals with value judgments, ethics, and policy goals.
Positive Economics
Positive Economics
This approach focuses on explaining and predicting economic phenomena. It relies on factual data and analysis, avoiding value judgments.
Long Run Analysis
Long Run Analysis
In the long run, all inputs are considered variable, allowing for adaptation and changes in production capacity.
Traditional Economic Approaches
Traditional Economic Approaches
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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.
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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.
