Questions and Answers
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'?
True
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?
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The positive approach in economics is concerned with what 'should be' or 'ought to be'?
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The normative approach in economics is concerned with what 'should be' or 'ought to be'.
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The positive approach in economics is concerned with what 'should be' or 'ought to be'.
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The traditional theory of economics has been established along three approaches, i.e., normative, positive, and descriptive.
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Macroeconomics is purely theoretical and analyzes occurrences under unrealistic assumption?
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The traditional theory of economics has been established along two approaches, i.e., normative and positive?
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The normative approach in economics is concerned with what 'should be' or 'ought to be'?
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The main focus in the long run analysis is on the planning period where all inputs are fixed?
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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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