Microeconomics - Chapter III (Methodology in Economics)

Choose the one that is most appropriate about economics.

• Economics is ant art

• Economics is a science

• Economics is both art and science

• Economics is neither art nor science

Which of the following makes economics a science?

• Systemized body of knowledge

• Capability of measurement

• Cause and effect relationship

• All of the options

Law of demand and supply are good examples of __________ in economics.

• Cause and effect relationship

• Systemized body of knowledge

• Capability of measurement

• All of the options

What type of a science is economics?

• Political

• Social

• Natural

• Physical

What makes economics an art?

• Positive statements

• Normative statements

• Practical use

• None of the options

Positive statements are __________ statements

• Objective

• Subjective

• Emotional

• Value

What is true about normative statements?

• They are objective

• They are objective and testable

• They are subjective and not testable

• All of the options

Which of the following is an example for positive statement?

• Petrol price should be decreased by the government

• Government ought to provide tax reduction for poor

• Price and demand is negatively related

• Minimum wage should be increased

Choose the example for normative statement?

• The unemployment rate of Oman is the lowest in GCC

• India is the second largest populated country in the world

• UAE is the richest country in the middle east

• Saudi Arabia should provide Hajj subsidy for poor

Choose what is true about economics?

• Economics involve only positive statements

• Economics involve only normative statements

• Economics involve both positive and normative statements

• Economics involve neither positive nor normative statements