Concept explainers
To explain:
Considering the following statements, which are based on a positive economic analysis that assumes all other things remain constant, list one other thing that might change and thus offset the outcome stated for each of the following.
a. Increased demand for laptop computers will drive up their price.
b. Falling gasoline prices will result in additional vacation travel.
c. A reduction of income tax rates will result in more people working
Concept Introduction:
Positive economic analysis: The positive economics is a statement of fact and it does not contain value judgments. The positive economics is based on the objective analysis. It deals with the question of what is. The positive statement can be tested and proven.
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