What is the primary goal of a circular economy?
A circular economy aims to minimize waste by reusing goods and services in continuous biological or technical cycles, reducing the reliance on new resource consumption.
What aspects does behavioral economics consider beyond traditional models?
Behavioral economics incorporates psychological, cognitive, emotional, cultural, and social influences on decision-making, which traditional models may neglect.
Who was a key proponent of monetarism and a critic of Keynesian economics?
Milton Friedman was a leading monetarist economist who challenged Keynesian policies, advocating for controlled supply of money and minimal government intervention in the economy.
What was John Maynard Keynes’ key principle in economic theory?
Keynes emphasized government intervention through fiscal policies to manage economic cycles and reach full employment, particularly during market downturns.
Which economist highlighted the conflict between labour and capital and predicted the collapse of the modern economic system?
Karl Marx
Why do we rely on the butcher, brewer, or baker for our dinner, according to Adam Smith?
We expect our dinner not because of their kindness, but because they are pursuing their own interests.
What does 'ceteris paribus' signify in economic analysis?
'Ceteris paribus' is a principle in economics meaning 'holding other things constant'. It helps isolate the effect of one variable on another, assuming no other variables change.
What is the basis of positive economic analysis?
Positive economic analysis is based on logical reasoning and empirical evidence, often utilizing mathematical models to explain and predict economic behavior without making value judgments.
What is the focus of positive economics?
Positive economics deals with objective, fact-based statements about the economy. It involves analyzing verifiable data to describe and explain economic events.
Identify the type of statement: "The government ought to reduce inflation."
Normative statement.