Questions on the nature of economics
Introduction to micro-economics
Identify which of the following statements are positive and which are normative:
- UK interest rates fell to their lowest recorded level in 2009.
- Employment rose to its highest recorded level in 2017.
- Higher interest rates are unfair because they penalise the poorest in society.
- Higher prices in a particular market encourage entrepreneurs to enter the market.
- The government should make nursery education free for all parents.
- The earnings of males are higher than those of females.
- Governments should not interfere in the workings of the market economy.
Describe the methods used by economists.
To what extent is economics a science?