23 Questions
When economics studies the facts with neutrality, economics is said to be a ______ science.
positive
What is the central focus of economics?
Scarcity of resources and choices among their alternative uses
What is the main problem in economics?
The existence of limited resources and unlimited human wants.
What is the origin of the word "Economics"?
Greek words meaning "household management"
What is the difference between positive and normative economics?
Positive economics studies facts with neutrality, while normative economics suggests changes to achieve desired objectives.
What does economics aim to achieve?
Growth with stability and efficiency.
What does economics show?
How to use scarce resources to increase wealth and human welfare
Who among the following defined economics as a study of wealth?
Adam Smith
But when suggestions are made to change the facts to achieve the desired objectives, economics is said to be a ______ science.
normative
How does economics become an art?
Economics becomes an art through the practical application of economic policies.
Thus application of economic policies make economics an ______.
art
What does scarcity induce people to do?
Make choices among alternatives
What are the two types of economics?
Microeconomics and macroeconomics.
Which economist focused on the distribution of wealth?
Ricardo
Can economics be both positive and normative at the same time?
Yes, economics can be both positive and normative at the same time, depending on the approach taken in studying and suggesting changes to economic facts.
What did Alfred Marshall define economics as?
A study of mankind in the ordinary business of life
What is the difference between microeconomics and macroeconomics?
Microeconomics studies individual parts of the economy, while macroeconomics studies the economy as a whole
What did Lionel Robbins define economics as?
A science studying human behavior as a relationship between ends and scarce means with alternative uses
What does applied economics do?
Applies economic principles to real-world situations.
What are some of the factors studied in applied economics?
Factors of production, public finance, and monetary and fiscal policies.
Which definition of economics has been criticized for not considering immaterial things that promote welfare?
Alfred Marshall's definition
Which definition of economics has been criticized for not distinguishing between goods conducive to human welfare and those that are not?
Lionel Robbins' definition
Is economics a science or an art?
Both a science and an art.
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