Essentials of Economics (MindTap C...

8th Edition
N. Gregory Mankiw
ISBN: 9781337091992



Essentials of Economics (MindTap C...

8th Edition
N. Gregory Mankiw
ISBN: 9781337091992
Textbook Problem

Which of the following is a positive, rather than a normative, statement?

a. Law X will reduce national income.

b. Law X is a good piece of legislation.

c. Congress ought to pass law X.

d. The president should veto law X.

To determine

Positive and normative statements.


Option (a):

“The law x will reduce the national income” is a positive statement; this is because it focused on the cause-and-effect behavioral relationship of law x and national income. Generally, economics is about positive analysis; it focused on cause-and-effect behavioral relationships and includes development and testing of economic theories. Positive economic statements do not have to be correct, but they must be able to be tested and proved or disproved. Thus, option “a” is correct.

Option (b):

“The law x is a good piece of legislation” is a normative statement; this is because it is subjective and opinion-based...

Still sussing out bartleby?

Check out a sample textbook solution.

See a sample solution

The Solution to Your Study Problems

Bartleby provides explanations to thousands of textbook problems written by our experts, many with advanced degrees!

Get Started

Additional Business Solutions

Find more solutions based on key concepts

Show solutions add

What are the two main causes of market failure? Give an example of each.

Brief Principles of Macroeconomics (MindTap Course List)

Identify and describe the three steps in the delegation process.

Foundations of Business (MindTap Course List)

What does cross-referencing mean in the posting process?

College Accounting (Book Only): A Career Approach

What is meant by catering theory, and how might it impact a firms dividend policy?

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)

Describe four risk responses.

Pkg Acc Infor Systems MS VISIO CD

If stock is issued for noncash assets, at what amount should the assets be recorded?

College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)

What is the purpose of building a theory?

Economics (MindTap Course List)