(a) The kind of statement (normative/ positive or both) it is-higher tax rate would generate increased tax revenues and those extra tax revenues should be used to give more government aid to the poor.

Question

Suppose that one summer the weather is very hot. How does this event affect the market for ice cream? And How a decrease in supply of ice cream affects the equilibrium price and quantity? Draw the graph according to the situations above. Which of the following statements are examples of positive economic analysis? Which are examples of normative analysis?a. The inheritance tax should be repealed because it is unfair.b. Allowing Chile to join NAFTA would cause wine prices in the United States to drop.c. The first priorities of the new regime in the Democratic Republic of Congo (DRC, formerly Zaire) should be to rebuild schools and highways and to provide basic health care.

Answer 1

Question

Chapter 1, Problem 8P

To determine

(a)

The kind of statement (normative/ positive or both) it is-higher tax rate would generate increased tax revenues and those extra tax revenues should be used to give more government aid to the poor.

To determine

(b)

The kind of statement (normative/ positive or both) it is-the study of physics is more valuable than the study of sociology, but both should be studied by all college students.

To determine

(c)

The kind of statement (normative/ positive or both) it is-the increase in the price of corn will decrease the amount of corn purchased. However, it will increase the amount of wheat purchased.

To determine

(d)

The kind of statement (normative/ positive or both) it is-A decrease in price of butter will increase the amount of butter purchased, but that would be bad because it would increase American's cholesterol levels.

To determine

(e)

The kind of statement (normative/ positive or both) it is-The birth rate is reduced as economies urbanize, but it also leads to a decreased average age of developing countries' population.

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Suppose that one summer the weather is very hot. How does this event affect the market for ice cream? And How a decrease in supply of ice cream affects the equilibrium price and quantity? Draw the graph according to the situations above. Which of the following statements are examples of positive economic analysis? Which are examples of normative analysis?a. The inheritance tax should be repealed because it is unfair.b. Allowing Chile to join NAFTA would cause wine prices in the United States to drop.c. The first priorities of the new regime in the Democratic Republic of Congo (DRC, formerly Zaire) should be to rebuild schools and highways and to provide basic health care.

Find one positive or one normative statement. Explain how you know they are either a positive or normative statement.

what is the difference between a positive statement and a normative statement?

Answer 2

Question

Chapter 1, Problem 8P

To determine

(a)

The kind of statement (normative/ positive or both) it is-higher tax rate would generate increased tax revenues and those extra tax revenues should be used to give more government aid to the poor.

To determine

(b)

The kind of statement (normative/ positive or both) it is-the study of physics is more valuable than the study of sociology, but both should be studied by all college students.

To determine

(c)

The kind of statement (normative/ positive or both) it is-the increase in the price of corn will decrease the amount of corn purchased. However, it will increase the amount of wheat purchased.

To determine

(d)

The kind of statement (normative/ positive or both) it is-A decrease in price of butter will increase the amount of butter purchased, but that would be bad because it would increase American's cholesterol levels.

To determine

(e)

The kind of statement (normative/ positive or both) it is-The birth rate is reduced as economies urbanize, but it also leads to a decreased average age of developing countries' population.

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Answer 3

Question

Chapter 1, Problem 8P

To determine

(a)

The kind of statement (normative/ positive or both) it is-higher tax rate would generate increased tax revenues and those extra tax revenues should be used to give more government aid to the poor.

To determine

(b)

The kind of statement (normative/ positive or both) it is-the study of physics is more valuable than the study of sociology, but both should be studied by all college students.

To determine

(c)

The kind of statement (normative/ positive or both) it is-the increase in the price of corn will decrease the amount of corn purchased. However, it will increase the amount of wheat purchased.

To determine

(d)

The kind of statement (normative/ positive or both) it is-A decrease in price of butter will increase the amount of butter purchased, but that would be bad because it would increase American's cholesterol levels.

To determine

(e)

The kind of statement (normative/ positive or both) it is-The birth rate is reduced as economies urbanize, but it also leads to a decreased average age of developing countries' population.

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Answer 4

Question

Chapter 1, Problem 8P

To determine

(a)

The kind of statement (normative/ positive or both) it is-higher tax rate would generate increased tax revenues and those extra tax revenues should be used to give more government aid to the poor.

To determine

(b)

The kind of statement (normative/ positive or both) it is-the study of physics is more valuable than the study of sociology, but both should be studied by all college students.

To determine

(c)

The kind of statement (normative/ positive or both) it is-the increase in the price of corn will decrease the amount of corn purchased. However, it will increase the amount of wheat purchased.

To determine

(d)

The kind of statement (normative/ positive or both) it is-A decrease in price of butter will increase the amount of butter purchased, but that would be bad because it would increase American's cholesterol levels.

To determine

(e)

The kind of statement (normative/ positive or both) it is-The birth rate is reduced as economies urbanize, but it also leads to a decreased average age of developing countries' population.

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Answer 5

Chapter 1, Problem 8P

To determine

(a)

The kind of statement (normative/ positive or both) it is-higher tax rate would generate increased tax revenues and those extra tax revenues should be used to give more government aid to the poor.

To determine

(b)

The kind of statement (normative/ positive or both) it is-the study of physics is more valuable than the study of sociology, but both should be studied by all college students.

To determine

(c)

The kind of statement (normative/ positive or both) it is-the increase in the price of corn will decrease the amount of corn purchased. However, it will increase the amount of wheat purchased.

To determine

(d)

The kind of statement (normative/ positive or both) it is-A decrease in price of butter will increase the amount of butter purchased, but that would be bad because it would increase American's cholesterol levels.

To determine

(e)

The kind of statement (normative/ positive or both) it is-The birth rate is reduced as economies urbanize, but it also leads to a decreased average age of developing countries' population.

Answer 6

Chapter 1, Problem 8P

To determine

(a)

The kind of statement (normative/ positive or both) it is-higher tax rate would generate increased tax revenues and those extra tax revenues should be used to give more government aid to the poor.

Answer 7

Chapter 1, Problem 8P

To determine

(a)

The kind of statement (normative/ positive or both) it is-higher tax rate would generate increased tax revenues and those extra tax revenues should be used to give more government aid to the poor.

Answer 8

To determine

(b)

The kind of statement (normative/ positive or both) it is-the study of physics is more valuable than the study of sociology, but both should be studied by all college students.

Answer 9

To determine

(b)

The kind of statement (normative/ positive or both) it is-the study of physics is more valuable than the study of sociology, but both should be studied by all college students.

Answer 10

To determine

(c)

The kind of statement (normative/ positive or both) it is-the increase in the price of corn will decrease the amount of corn purchased. However, it will increase the amount of wheat purchased.

Answer 11

To determine

(c)

The kind of statement (normative/ positive or both) it is-the increase in the price of corn will decrease the amount of corn purchased. However, it will increase the amount of wheat purchased.

Answer 12

To determine

(d)

The kind of statement (normative/ positive or both) it is-A decrease in price of butter will increase the amount of butter purchased, but that would be bad because it would increase American's cholesterol levels.

Answer 13

To determine

(d)

The kind of statement (normative/ positive or both) it is-A decrease in price of butter will increase the amount of butter purchased, but that would be bad because it would increase American's cholesterol levels.

Answer 14

To determine

(e)

The kind of statement (normative/ positive or both) it is-The birth rate is reduced as economies urbanize, but it also leads to a decreased average age of developing countries' population.

Answer 15

To determine

(e)

The kind of statement (normative/ positive or both) it is-The birth rate is reduced as economies urbanize, but it also leads to a decreased average age of developing countries' population.

Answer 16

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Answer 27

Ch. 1 - Prob. 1P Ch. 1 - Prob. 2P Ch. 1 - Prob. 3P Ch. 1 - Prob. 4P Ch. 1 - Prob. 5P Ch. 1 - Prob. 6P Ch. 1 - Prob. 7P Ch. 1 - Prob. 8P Ch. 1 - Prob. 9P Ch. 1 - Prob. 10P

(a) The kind of statement (normative/ positive or both) it is-higher tax rate would generate increased tax revenues and those extra tax revenues should be used to give more government aid to the poor.

Solution Summary: The author explains the difference between a normative statement and one that states 'what is'.

Concept explainers

(a)

The kind of statement (normative/ positive or both) it is-higher tax rate would generate increased tax revenues and those extra tax revenues should be used to give more government aid to the poor.

(b)

The kind of statement (normative/ positive or both) it is-the study of physics is more valuable than the study of sociology, but both should be studied by all college students.

(c)

The kind of statement (normative/ positive or both) it is-the increase in the price of corn will decrease the amount of corn purchased. However, it will increase the amount of wheat purchased.

(d)

The kind of statement (normative/ positive or both) it is-A decrease in price of butter will increase the amount of butter purchased, but that would be bad because it would increase American's cholesterol levels.

(e)

The kind of statement (normative/ positive or both) it is-The birth rate is reduced as economies urbanize, but it also leads to a decreased average age of developing countries' population.

Chapter 1 Solutions

(a) The kind of statement (normative/ positive or both) it is-higher tax rate would generate increased tax revenues and those extra tax revenues should be used to give more government aid to the poor.

Solution Summary: The author explains the difference between a normative statement and one that states 'what is'.

Concept explainers

(a) The kind of statement (normative/ positive or both) it is-higher tax rate would generate increased tax revenues and those extra tax revenues should be used to give more government aid to the poor.

(b) The kind of statement (normative/ positive or both) it is-the study of physics is more valuable than the study of sociology, but both should be studied by all college students.

(c) The kind of statement (normative/ positive or both) it is-the increase in the price of corn will decrease the amount of corn purchased. However, it will increase the amount of wheat purchased.

(d) The kind of statement (normative/ positive or both) it is-A decrease in price of butter will increase the amount of butter purchased, but that would be bad because it would increase American's cholesterol levels.

(e) The kind of statement (normative/ positive or both) it is-The birth rate is reduced as economies urbanize, but it also leads to a decreased average age of developing countries' population.

Chapter 1 Solutions

(a)

The kind of statement (normative/ positive or both) it is-higher tax rate would generate increased tax revenues and those extra tax revenues should be used to give more government aid to the poor.

(b)

The kind of statement (normative/ positive or both) it is-the study of physics is more valuable than the study of sociology, but both should be studied by all college students.

(c)

The kind of statement (normative/ positive or both) it is-the increase in the price of corn will decrease the amount of corn purchased. However, it will increase the amount of wheat purchased.

(d)

The kind of statement (normative/ positive or both) it is-A decrease in price of butter will increase the amount of butter purchased, but that would be bad because it would increase American's cholesterol levels.

(e)

The kind of statement (normative/ positive or both) it is-The birth rate is reduced as economies urbanize, but it also leads to a decreased average age of developing countries' population.