Multiple Choice
An extreme result of free-market capitalism without government regulation is referred to as:
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0. Basic Principles of Economics
Positive and Normative Analysis
Multiple Choice
Which type of economists place an emphasis on long-run economic performance?
A
Normative economists; long
B
Positive economists; short
C
Positive economists; long
D
Normative economists; short
Verified step by step guidance1
Understand the difference between positive and normative economics: Positive economics deals with objective analysis and facts about how the economy works, focusing on cause-and-effect relationships without judgments. Normative economics involves value judgments and opinions about what the economy should be like or what policies ought to be implemented.
Recognize the time frame focus: Long-run economic performance refers to the economy's behavior over an extended period, considering growth, structural changes, and sustainability. Short-run performance focuses on immediate or temporary economic fluctuations.
Identify which type of economist typically emphasizes long-run economic performance: Positive economists analyze data and trends over both short and long terms to understand economic behavior without prescribing policies. Normative economists often focus on policy recommendations, which can be related to either short or long run but are more about what should be done.
Match the correct pairing: Since positive economists focus on objective analysis, including long-run trends, and normative economists focus on value-based judgments, the emphasis on long-run economic performance aligns with positive economists.
Conclude that the correct answer is 'Positive economists; long' because they analyze and emphasize long-run economic performance through objective study.
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