Microeconomics (7th Edition)
7th Edition
ISBN: 9780134737508
Author: R. Glenn Hubbard, Anthony Patrick O'Brien
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Question
Chapter 1, Problem 1.3.8PA
To determine
Understanding positive and normative issues.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Explain the difference between positive and normative economics
Consider the following two statements. In each case, explain briefly your answer:
a. A 5 percent fall in the unemployment rate will lead to a 2 percent increase in the inflation rate"
b. "Pollution in developing countries is one of the biggest global environmental problems"
Which of the these statements is an example of "positive" economics
Which of these statements in an example of :normative "economics
Ben says that "An increase in the tax on beer will raise its price." Holly argues that "Taxes should be increased on beer because college students drink too much." We can conclude that:
Ben's statement is normative, but Holly's is positive.
Holly's statement is normative, but Ben's is positive.
Both statements are normative.
Both statements are positive.
The following table shows the amount of good A and good B that two countries could produce if they devoted all their resources to that good. Assume both countries have the same quantity of resources and the trade-off between good A and good B remains constant as resources are shifted from one good to another. Answer the questions below and show calculations where appropriate.
Canada
India
Good A
600
500
Good B
950
1200
Draw a straight-line PPF graph for Canada.
Draw a straight-line PPF graph for India.
Which country has the comparative advantage in good A? In good B? Explain.
What is India’s marginal opportunity cost of producing good A? Good B?
Based on the data given, what is the terms of trade range for good A in terms of units of good B?
Chapter 1 Solutions
Microeconomics (7th Edition)
Ch. 1.A - Prob. 1PACh. 1.A - Prob. 2PACh. 1.A - Prob. 3PACh. 1.A - Prob. 4PACh. 1.A - Prob. 5PACh. 1.A - What is the area of the triangle shown in the...Ch. 1.A - Prob. 7PACh. 1 - Prob. 1TCCh. 1 - Prob. 2TCCh. 1 - Prob. 1.1.1RQ
Ch. 1 - Prob. 1.1.2RQCh. 1 - Prob. 1.1.3PACh. 1 - Prob. 1.1.4PACh. 1 - Prob. 1.1.5PACh. 1 - Prob. 1.1.6PACh. 1 - Prob. 1.1.7PACh. 1 - Prob. 1.1.8PACh. 1 - Prob. 1.1.9PACh. 1 - Prob. 1.1.10PACh. 1 - Prob. 1.1.11PACh. 1 - Prob. 1.2.1RQCh. 1 - Prob. 1.2.2RQCh. 1 - Prob. 1.2.3RQCh. 1 - Prob. 1.2.4RQCh. 1 - Prob. 1.2.5PACh. 1 - Prob. 1.2.6PACh. 1 - Prob. 1.2.7PACh. 1 - Prob. 1.2.8PACh. 1 - Prob. 1.2.9PACh. 1 - Prob. 1.2.10PACh. 1 - Prob. 1.2.11PACh. 1 - Prob. 1.2.12PACh. 1 - Prob. 1.2.13PACh. 1 - Prob. 1.3.1RQCh. 1 - Prob. 1.3.2RQCh. 1 - Prob. 1.3.3RQCh. 1 - Prob. 1.3.4PACh. 1 - Prob. 1.3.5PACh. 1 - Prob. 1.3.6PACh. 1 - Prob. 1.3.7PACh. 1 - Prob. 1.3.8PACh. 1 - Prob. 1.3.9PACh. 1 - Prob. 1.3.10PACh. 1 - Prob. 1.3.11PACh. 1 - Prob. 1.4.1RQCh. 1 - Prob. 1.4.2RQCh. 1 - Prob. 1.4.3PACh. 1 - Prob. 1.4.4PACh. 1 - Prob. 1.1CTECh. 1 - Prob. 1.2CTE
Knowledge Booster
Similar questions
- 1. Briefly explain which of the following statements represents positive analysis and which represent normative analysis. a. The Federal government should spend more on Covid research. b. “In 2011, Jeff Bezos. Founder of Amazon, paid $0 in U.S. Federal income tax.”c. “It is unfair that multi-billion-dollar companies can get away without paying taxes.”arrow_forwardBen says that "An increase in the tax on beer will raise its price." Holly argues that "Taxes should be increased on beer because college students drink too much." We can conclude that: Ben statement is normative, but Holly's is positive. Holly statement is normative, but Ben's is positive. Both statements are normative. Both statements are positive.arrow_forwardDuring the summer you have made the decision to attend summer school, which prevents you from working at your usual summer job in which you normally earn $6,000 for the summer. Your tuition cost is $3,000 and books and supplies cost $1,300. In terms of dollars, what is the opportunity cost of attending summer school? Show your calculation. What is comparative advantage? Give an example. Why does it make sense for economies to specialize according to comparative advantage and trade? What is the production possibilities frontier? What economic concepts are represented in the production possibilities model?arrow_forward
- 2) Write a clearly normative economic statement referring to comparative advantage.Explain why is it a normative statement.arrow_forwardNew cars to remain scarce well into next year as semiconductor shortage wears on. Explain how thisrelates to economic resources and production possibilities, considering specifically how the shortage of semiconductor chips has shifted the production possibilities curve inward for automobile production . Be sure to use economic terminology in your posting and focus entirely on the economic issues, leaving any political thoughts out of your posting.arrow_forward. Which of the following is a normative statement: a. Women’s labor force participation (LFP) increased substantially in the latter half of the 20th century b. Women with children shouldn’t go to work c. Age at first marriage has been increasing since 1970 d. The increase in women’s LFP was caused by the decline in marriage e. Age at first marriage and women’s LFP are positively correlated..arrow_forward
- Explain how this relates to economic resources and production possibilities, considering specifically how the shortage of semiconductor chips has shifted the production possibilities curve inward for automobile production . Be sure to use economic terminology in your posting and focus entirely on the economic issues, leaving any political thoughts out of your posting.arrow_forwardWhich of the following is a normative statement * If a sin tax is imposed on cigarettes and alcohol, consumers will carry more of the tax burden Sin tax should be imposed because cigarettes and alcohol are bad for the health The future revenues of the proposed sin tax rate are lower than the policy goal A and Barrow_forward18. Normative and positive statements The following table contains statements that provide some analysis of policies that address taxes. Categorize each of these statements as either positive or normative. Statement Positive Normative Taxes are too high. In some circumstances, if taxes are lowered, government revenues actually increase. It is immoral for a government to redistribute money from one person to another. When the government increases taxes, rates of tax evasion increase.arrow_forward
arrow_back_ios
arrow_forward_ios
Recommended textbooks for you
Exploring EconomicsEconomicsISBN:9781544336329Author:Robert L. SextonPublisher:SAGE Publications, Inc
Exploring Economics
Economics
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:SAGE Publications, Inc