8. A positive statement is one which: • Is based on opinion • Is based on a value judgement 9. Which of the following is not a positive statement? • Falling prices are good for Cannot be tested or verified Can be tested and verified • Rising prices can encourage production • Falling prices can encourage consumer spending consumers • An increase in the price of houses will affect real incomes 10. The following statements s normative • Poverty is something society should reduce Some of the earth's scarce resources are nonrenewable • Not all resources experience price rises An increase in house prices is likely to lead toa reduction in demand 11. The rationing function of the price mechanism can be explained in which of the following ways? • Prices reflects the wants and needs of consumers Governments limiting the supply of scarce resources during a time of war • As resources are increasingly used, price are driven up which slows down the rate of usage When prices are falling suppliers are likely to supply more goods

8. A positive statement is one which: • Is based on opinion • Is based on a value judgement 9. Which of the following is not a positive statement? • Falling prices are good for Cannot be tested or verified Can be tested and verified • Rising prices can encourage production • Falling prices can encourage consumer spending consumers • An increase in the price of houses will affect real incomes 10. The following statements s normative • Poverty is something society should reduce Some of the earth's scarce resources are nonrenewable • Not all resources experience price rises An increase in house prices is likely to lead toa reduction in demand 11. The rationing function of the price mechanism can be explained in which of the following ways? • Prices reflects the wants and needs of consumers Governments limiting the supply of scarce resources during a time of war • As resources are increasingly used, price are driven up which slows down the rate of usage When prices are falling suppliers are likely to supply more goods

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter1: The Role And Method Of Economics

Section: Chapter Questions

Problem 8P

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