Normative Analysis: The Two Types Of Economic Analysis

The world is consuming more than it can produce. In order to produce the amount that we use, requires a lot of waste to be made. Industrial production produces industrial waste. With the amount of waste being produced it is effecting the environment, especially the water and food supply. Everyone is a polluter and everyone abuses the environment.

The excess use of fertilizers can result in soil erosion and can lead to land pollution.

based upon a doubling of production. This means every time that the production doubles, there is

produce more because it takes less time to produce. Available resources and the process of change can also

The labor supply curve facing an individual employer in a perfectly competitive labor market is:

power. Another example would be technology taken way too far or used for the wrong purposes,

Victor Fuchs (1996) lists the following questions in an article in The Wall Street Journal. Identify whether the following questions involve positive or normative analysis. All the questions deal with a Republican plan to reform Medicare, the public health insurance program for the elderly. A. How many Medicare beneficiaries will switch to managed care? B. How much should the younger generation be taxed to pay for the elderly? C. Should seniors who use less care benefit financially, or should they subsidize those who use more care? D. How many Medicare beneficiaries will switch to medical saving accounts? E. What effect will these changes have on utilization?

5) The bargaining power of suppliers: The cost of factors of production (e.g. labor, raw materials, components, and services such as expertise) provided by suppliers can have a significant impact on a company's profitability. As such suppliers may refuse to work with the firm or charge excessively high prices for unique resources.

A production possibilities curve is an economics model that graphically displays the production potential for a pair of goods. Different production combinations, such as those in Table 1 can be plotted along an XY axis, beginning

If 10 people with 10 different occupations are asked to define economics, one would receive 10 different answers because the concept of economics confuses people. “Economics is the study of the choices consumers, business managers, and government officials make to attain their goals, given their scarce resources,” (Hubbard & O’Brien, 2010, p. 4). Oftentimes, people do not realize how many economic decisions they regularly make. People make daily economic decisions by comparing marginal benefits and marginal costs in conjunction with their current economic market system.

8. Land – refers to all natural resources, which are given by, and found in nature, and are, therefore, not manmade.

Production Possibility Frontier (PPF) is a graph that shows the potential combinations of goods that an economy is able to produce given available technology and factors of production.

Economics is a system that attempts to acquire a balance between the available resources and demands. Currently, three types of economies are recognised in the world; command market, mix market and the free market. Each of these types has different systems. While in the command economy, the central authorities make all the economic decisions, in the free economy, the households and firms are responsible for all economic policies (Sloman and Garratt. 2010, P.17). On the other hand, the mixed economy is a combination of both the command and free market, which means the economic decision are collectively taken by both the government and the market.

The line chart shows the percentage for number of establishment and employment for year 2017 to 2019. For percentage of

Natural resources in the form of materials, water and energy, as well as the land available to us on Earth, are the basis of all living beings on our planet. Without the use of natural resources, our economy or our society could not function and even if they could it would not be very efficient.