Distinguishing positive and normative economics

Question

Answer the following questions.

Question 1) What do you mean by economics.

Question 2) Explain the “economic way of thinking,” including definitions of rational behavior, marginal costs, marginal benefits and how these concepts may be used in decision making.

Question 3) Write down some significant reasons for studying economics.

Question 4) Describe how economists use the scientific method to formulate economic principles.

Question 5) Describe the importance of ceteris paribus in formulating economic principles.

Question 6) Describe the steps used by policy makers.

Question 7) Write down eight economic goals and provide examples of conflicting and complementary goals.

Question 8) Distinguish between micro- and macroeconomics.

Question 9) Distinguish between positive and normative economics.

Question 10) Describe and provide examples of the fallacy of composition and post hoc fallacy.

Question 11) Describe and show a direct relationship between two variables, and define and identify the positive sloping curve.

Question 12) Describe and show an inverse relationship between two variables, and define and identify the negative slope.

Question 13) Identify independent and dependent variables.