Describing and explaining economic events that have taken place in the real world is known as ___________.

Question

Quizplus · Accepted Answer

Describing and explaining economic events that have taken place in the real world is the definition of positive economics. Normative economics involves making value judgments about what the economy should be like rather than describing how it actually is. The equimarginal principle is a concept used in economics to explain how rational consumers allocate their money to maximize utility. The Coase theorem is an economic theory that states that if property rights exist and transaction costs are low, private parties can efficiently bargain and reach a mutually beneficial agreement about the use of resources.

Describing and Explaining Economic Events That Have Taken Place in the Real