EBK PRINCIPLES OF MACROECONOMICS
12th Edition
ISBN: 9780134079592
Author: Oster
Publisher: YUZU
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Question
Chapter 1, Problem 3.2P
To determine
Positive and normative statements.
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Which of the following statements are examples of positive economic analysis? Which are examples of normative analysis?
c. Florida should devote all revenues from its state lottery to improving public education.
d. Eliminating the trade embargo with Cuba would increase the number of Cuban cigars available in the United States.
e. As a public safety measure, the state of Texas should repeal legislation that allows people with concealed handgun permits to carry concealed weapons on college campuses.
Which of the following statements are examples of positive economic analysis? Which are examples of normative analysis?
a. A devaluation of the U.S. dollar would increase exports from the United States.
b. Increasing the federal tax on gasoline would cause shipping costs in the United States to increase.
c. Florida should devote all revenues from its state lottery to improving public education.
b. What is the difference between positive and normative analysis? Which of the following statements would entail positive analysis, and which normative analysis?
i. Internet auction companies will erode the profits of local automobile dealerships.
ii. The government should impose special taxes on sales of merchandise made over the Internet.
c. Why is the circular flow model important?
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Similar questions
- Question 12 of 23 Classify each of the statements as an example of positive or normative analysis.. The sugar quota in the United States costs consumers $6.08 billion a year. Positive Higher tariffs on imported automobiles would decrease the demand for Normative foreign made cars. International trade should be be limited because it can cause some workers Positive to lose their jobs. International trade makes some people better off and some people Normative worse off. The U.S. should impose import quotas in the market for consumer Normative electronics to help domestic workers. The sugar quota in the U.S. is good public policy and should be Positive made stronger. Answer Bank Normative Positive MacBook Airarrow_forwardProblem 1 Is each of the following a positive or normative statement? If it is a positive statement, write a normative statement that addresses the same issue. If it is a normative statement, write a positive statement that addresses the same issue. a.) Decreasing tax rates causes total tax revenue to increase. b.) The U.S. government should eliminate seat belt requirements for new vehicles. c.) The College of New Jersey should decrease tuition and fees for students. d.) If a state adopts "Right to Work" laws, wages will go down.arrow_forward1. Which of the following statements is a normative as opposed to a positive economic statement? A)If the price of cars goes up, people buy fewer cars. B)When a government prints too much money, inflation tends to rise. C)Labor unions should be allowed to organize in every country. D)Consumer spending helps to create jobs. 2. The production possibilities curve shifts outward when A)there is an increase in resources or technology .B)we produce more consumption goods over productive investment in equipment. C)the economy is producing efficiently. D)the law of increasing additional cost takes hold.arrow_forward
- Why is it important to be able to distinguish positive from normative statements about economic policy? Question 8 options: Positive statements are always true and are the basis of economic policy while normative statements are false and should NEVER be used. Positive statements help us understand the value judgments toward a particular policy, while normative statements reflect the economy's response. Positive statements help us understand the economy's response to a particular policy, while normative statements reflect value judgments. Positive statements help us understand the good results of a policy change, and normative statements help us understand the negative results.arrow_forwardWhat is the difference between positive and normative economics? Why are positive questions easier to answer than normative questions?arrow_forwardExplain the difference between positive and normative analysis. Provide an example of a normative statement or an example of a positive statement from a recent news story.arrow_forward
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