In ___________________ economics, value judgments are excluded in favor of objective facts?
Show answer Hide answer
Answer: A. Positive economics
Explanation
Positive economics focuses strictly on objective, testable facts and excludes value judgments. It analyzes what is in the economy rather than what ought to be. Statements in this branch can be verified or disproven using empirical data. Positive economic statements rely on statistical analysis and scientific observation. For instance, stating that a tax increase reduces consumer spending is a testable positive claim. It avoids personal opinions on whether that tax increase is fair or desirable.
Economists use positive analysis to forecast the likely effects of minimum wage hikes. This objective approach provides reliable data for government officials making policy decisions. It separates empirical science from political rhetoric. Normative economics deals directly with subjective value judgments and ethical opinions. Theoretical economics builds models but does not inherently exclude normative values. Option D uses informal phrasing rather than standard economic terminology.
- Subject
- Agriculture
- Category
- Agriculture
- Topic
- —
- Difficulty
- medium
Related questions
Q1. The central monetary authority managing currency issuance, reserves, and monetary policy?
Show answer Hide answer
Answer: B. State Bank
A state bank or central bank acts as the primary monetary authority managing currency issuance. It regulates commercial bank reserves, sets benchmark interest rates, and oversees monetary policy. These functions ensure f...
Q2. Monopoly and oligopoly serve as classic illustrations of___________________?
Show answer Hide answer
Answer: B. Imperfect competition
Monopoly and oligopoly are standard market structures categorized under imperfect competition. In these markets, firms possess varying degrees of market power to influence prices. This contrasts with perfect competition,...
Q3. Expanding a nation's stock of physical capital assets (net fixed investment)__________________?
Show answer Hide answer
Answer: A. Capital accumulation
Capital accumulation refers to expanding a nation stock of physical capital assets through net investment. This process involves building infrastructure, purchasing machinery, and constructing new factories. It directly...
Q4. Nominal income adjusted to account for inflation__________________?
Show answer Hide answer
Answer: A. Real income
Real income is nominal income adjusted for inflation to reflect true purchasing power. Without this adjustment, rising nominal wages can be misleading during inflationary periods. Real income reveals whether households c...
Q5. Economically inactive members of a population___________________?
Show answer Hide answer
Answer: C. Economic dependency burden
Economically inactive members of a population comprise the economic dependency burden. This group includes children, retirees, and others who do not participate in the workforce. Active laborers must generate enough outp...
Q6. Holding all else constant, as prices increase the corresponding quantity supplied increases, and as prices decrease the quantity supplied decreases ___________________?
Show answer Hide answer
Answer: C. Law of supply
The law of supply states that price and quantity supplied are directly related, holding other factors constant. When prices rise, producers increase output to capture higher profits. When prices fall, production is scale...