Economic prosperity is best described as which type of economic issue?

• A. A microeconomic issue
• B. A macroeconomic issue
• C. A positive issue
• D. A normative issue

Answer: (B)

Verified step by step guidance

1. Step 1: Understand the difference between microeconomics and macroeconomics. Microeconomics focuses on individual agents like households and firms, while macroeconomics looks at the economy as a whole, including aggregate indicators such as GDP, unemployment, and economic growth.
2. Step 2: Define economic prosperity. Economic prosperity generally refers to the overall wealth, health, and standard of living in an economy, which involves aggregate measures rather than individual decisions.
3. Step 3: Determine whether economic prosperity is a microeconomic or macroeconomic issue. Since it deals with the overall economic well-being and aggregate outcomes, it falls under macroeconomics.
4. Step 4: Differentiate between positive and normative issues. Positive economics deals with objective analysis and facts, while normative economics involves value judgments and opinions about what ought to be.
5. Step 5: Recognize that economic prosperity as a concept can be discussed in both positive and normative terms, but the question specifically asks about the type of economic issue, which is macroeconomic.