Micro Economics

Question 1

1.1

Positive Economics
Positive economics or a positive statement is an objective statement or fact. Positive statements can be proved or disproved by comparing them with the facts. For example, ‘Barcelona won the UEFA champions league in 2006, beating Arsenal.’ This is a fact.

Normative Economics
Normative economics or a normative statement involves an opinion or a valid judgment. Normative issues can be debated but they can never be settled by science or by an appeal to facts. For example, The South African cricket team (the proteas) should win the cricket world cup and bring the trophy home.

A statement which includes words such as, ‘should, ‘ought’ and ‘must’ are all normative statements. But not all normative statements contain these words.


1.2
Micro economics
In micro economics the focus is on individual parts of the economy. In micro economics the decisions made by individual consumers, households, firms or......

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Title: Mirco Economics
Approximate Word Count: 1489
Approximate Pages: 6 (250 words per double-spaced page)

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