Economists Use ____ Economic Analysis to Understand an Individual Market

question 139

Multiple Choice

Economists use ____ economic analysis to understand an individual market. They then use ____ economic analysis to guide future national economic policy.

• A) b and d
• B) macro; micro
• C) positive; normative
• D) normative; positive

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Definitions:

Particular Consequence

Specific outcomes or results that follow from a particular action, decision, or event, with implications for those involved.

Reinforcement Theory

A theory that posits behavior is motivated by its consequences, with reinforcement used to either increase desired behaviors or decrease unwanted ones.

Reinforcement and Reward

Strategies for strengthening or increasing a desired behavior by providing positive outcomes or incentives following that behavior.

Desirable Behavior

Actions or conduct encouraged within a group or society because it is considered beneficial or socially valued.