Principles of Economics - Text Only (Looseleaf) (Custom)
17th Edition
ISBN: 9781305315617
Author: Mankiw
Publisher: CENGAGE L
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Question
Chapter 2, Problem 6CQQ
To determine
Positive and normative statements.
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Each of the following situations requires some trade-offs. You are supposed to analyze and discuss a few trade-offs with respect to each of the given situation.
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Chapter 2 Solutions
Principles of Economics - Text Only (Looseleaf) (Custom)
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- 1. Which of the following is not a normative statement?a. The military budget should increase at the same rate as GDP.b. The government should play a limited economic role, ensuring that private contracts are enforced.c. Integrated schooling has increased the level of literacy among minority groups.d. A tax on imported oil should be used to reduce the government deficit.arrow_forwardWhat is a Positive or Normative statement. 1. The moon is made of green cheese. 2. I think everyone needs to work at a bank to see the true value of money. 3. More Taxes on the rich will increase tax revenues. 4. Government intervention in markets is bad. 5. Economics majors earn more on average than sociology majors.arrow_forwardYou are told by your supervisor that people in Bahamas should drive less to work and save their income. This is an example of ________ statement. a. economic b. normative c. positive d. microeconomicarrow_forward
- Which one of the following is a positive economic statement? a.Thoughtful people oppose an increase in the minimum wage. b.An increase in the minimum wage will reduce employment. c.Social justice will be served by increasing the minimum wage. d.The minimum wage should be increased.arrow_forwardNormative economics is: a. An investigation or statement about the norms and culture of other countries. b. An investigation or statement that attempts to describe how the world should be or ought to be. c. An investigation or statement about the positive benefits of a given country.arrow_forwardWhich of the following is a normative economic statement? a. The national unemployment rate in January of this year was 5.5%. b. The government should commit to reducing income inequality. c. The inflation rate next year will be less than 3%. d. A reduction in the government deficit by 1% will make interest rates decrease 1%.arrow_forward
- In your own words, what does "economics" actually mean? What are some of the different schools of thought or ideas on what the term economics means? Why is it important to. understand these differences?arrow_forward1. Identify each of the following statements as either positive (P) or normative (N) a. The federal government's budget this year is the largest in history. b. The national debt is at a manageable level and therefore is nothing to worry about. c. The price of gasoline is higher than it needs to be. d. Rising Canadian exports are creating many new jobs in the country. 2. Identify which of the following topics would likely appear in a microeconomics course and which in a macroeconomics course. a. The price of iPods b. Unemployment rates c. The presence of monopolies d. The rate of economic growth 3. a. If society produces 1000 units of butter, how many guns can it produce? 6. If society is at "b" on the PPC, what is the cost of 1000 more units of butter? 400 c. Is opportunity cost greater for move from "c" to "d" compared to a move from "b" to "c"? 300 150 2000 Quantity of butter per period 1000 3000 eanng MeGreyenan Lam Quantity of guns per periodarrow_forwardWhat is an example of a significant aspect of an economy?arrow_forward
- Which of the following statements are positive, and which are normative? i. If interest rates increase, investment will decrease.ii. The minimum wage ought to be abolished. iii. If welfare benefits were reduced, the country would be better off. iv. If consumer income increases, other things equal, the demand for automobiles will increase. v. The Pakistan income distribution should be equitable.arrow_forwardEconomic Models? a. are essential representations of the real world b. are used to explain how people think c. are never used for making economic projections or predictions d. are used to explain how people behavearrow_forwardWhich of the following is a positive economic statement? A. Unemployment insurance payments increase when the unemployment rate rises. B. States should be able to enact their own marijuana legalization laws. C. The government should defund Obamacare. D. The inflation rate in the United States is too high.arrow_forward
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