Economists use _____ economic analysis to understand an individual market. They then use _____ economic analysis to guide an appropriate national economic policy.

Question

Quizplus · Accepted Answer

Economists use microeconomic analysis to understand individual markets and macroeconomic analysis to guide appropriate national economic policies. Therefore, option C is the correct choice where economists use microeconomic analysis (often called positive analysis) to understand individual markets and macroeconomic analysis (often called normative analysis) to shape appropriate national economic policies. Option A and D are not correct as they do not accurately represent the type of analysis used in Economics. Option B is partially correct as economists do use microeconomic analysis, but the use of positive analysis to guide national economic policies is not accurate.

Economists Use _____ Economic Analysis to Understand an Individual Market