Topic 1: The Central Economic Problem Flashcards
1
Q
definition of positive economic analysis
A
it is objective and fact based, the analysis can be true or false and that it can be verified or tested
2
Q
definition of normative statement
A
it is subjective and value based, the statements cannot be verified or tested and instead depends on the value proposition of the people involved
3
Q
is the following statement positive or normative “price of vegetables have risen”
A
positive (it is a fact that can be proven or tested)
4
Q
is the following statement positive or normative “ the government should provide education for free”
A
normative (it is an opinion based statement and not factual)
5
Q
definition of opportunity cost
A
opportunity cost is defined as the value of the best best alternative forgone or sacrificed
6
Q
A
