Eco. 101 Online Quiz/Discussion (Understanding Normative&Positive Economics and Ceteris Paribus)
1. It has been argued by many scholars and Economists that positive economics describes and explains various economic phenomena. Normative economics focuses on the value of economic fairness, or what the economy “should be” or “ought to be.” While positive economics is based on fact and cannot be approved or disapproved, normative economics is based on value judgments. In view of these assertions, clearly discuss and analyse the differences between between normative economics and positive economics.
2. Ceteris paribus is a Latin phrase that generally means “all other things being equal.” In economics, it acts as a shorthand indication of the effect one economic variable has on another, provided all other variables remain the same. Against this backdrop, lucidly discuss and analyse the concept of Ceteris Paribus in Economics with practical examples.
