Economic Methodology And The Econ Problem

Question 1

What is economics

Answer 1

Economics is a social science.

Social science studies society and the relationships of individuals within a society.

Like sociology, psychology ect

Question 2

What’s positive statements

Answer 2

A statement of fact that can be scientifically tested to see if it is correct or incorrect

Question 3

What’s a normative statement

Answer 3

A statement that includes a value judgement and cannot be refuted just by looking at evidence

Question 4

What is the purpose of economic activity

Answer 4

To satisfy people’s needs and wants

Question 5

What’s economic welfare

Answer 5

The economic well being of an individual, a group within society or an economy

Question 6

What is productive efficiency

Answer 6

For the economy as a whole occurs when it is impossible to produce more of one good without producing less of another. For a firm it occurs when the average total cost of production is minimised