SCRIPT FINAL PAPER 2026 FULL
SOLUTION QUESTIONS AND ANSWERS
●● Analytical Models. Answer: Simplified representations of reality
used to predict outcomes and test policy effectiveness.
●● Positive Economics. Answer: Describes what is (objective and
testable).
●● Normative Economics. Answer: Describes what should be (value-
based).
●● Moral Approaches. Answer: Focuses on ethics, rights, fairness.
●● Economic Approaches. Answer: Focuses on efficiency, costs, and
benefits.
●● Incentives. Answer: Guide behavior.
●● Profit Motive. Answer: Can encourage efficiency but can also
encourage pollution, ignore external costs, and exploit open-access
resources.