Chapter 1

Question 1

Economics as a
Social Science

Answer 1

• human behavior
• consumer behavior
• decision-making
• dealing with scarcity

Question 2

What is a positive economic statement?

Answer 2

Any statement that can be true or false by reference to facts

Question 3

What questions do positive economic statements answer?

Answer 3

What is…

Question 4

What is a normative economic statement?

Answer 4

Any statement that is an opinion; therefore, cannot be true or false.

Question 5

What question do normative economic statements answer?

Answer 5

What one should be? (in one’s opinion)