Ben says that "An increase in the tax on beer will raise its price." Holly argues that "Taxes should be increased on beer because college students drink too much." We can conclude that: Ben statement is normative, but Holly's is positive. Holly statement is normative, but Ben's is positive. Both statements are normative. Both statements are positive.

Ben says that "An increase in the tax on beer will raise its price." Holly argues that "Taxes should be increased on beer because college students drink too much." We can conclude that: Ben statement is normative, but Holly's is positive. Holly statement is normative, but Ben's is positive. Both statements are normative. Both statements are positive.

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter1: Introducing The Economic Way Of Thinking

Section1.6: Why Do Economists Disagree?

Problem 2.2YTE

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Ben says that "An increase in the tax on beer will raise its price." Holly argues that "Taxes should be increased on beer because college students drink too much." We can conclude that: Ben's statement is normative, but Holly's is positive. Holly's statement is normative, but Ben's is positive. Both statements are normative. Both statements are positive.
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 Which are examples of normative analysis?a. The inheritance tax should be repealed because it is unfair.b. Allowing Chile to join NAFTA would cause wine prices in the United States to drop.c. The first priorities of the new regime in the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.
Brinley says that "gas prices are rising because there aren't enough oil refineries." argues that "gas prices are rising because of the growing demand for gasoline fro and India." We can conclude that: Brinley's statement is positive; Katie's statement is normative. Both statements are positive. Brinley's statement is normative; Katie's statement is positive. Both statements are normative. Question 4
What is the difference between positive and normative economics? How can knowledge of positive economics be useful in normative economics?
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Which of the following two statements involves positive economic analysis and which normative? How do the two kinds of analysis differ? Statement #1: Gasoline rationing (allocating to each individual a maximum amount of gasoline that can be purchased each year) is poor social policy because it interferes with the workings of the competitive market system. This statement involves OA. positive analysis because it states what the effect of gasoline rationing is. OB. positive analysis because it states what the effect of gasoline rationing is and normative analysis because it makes a value judgment about the desirability of the rationing policy. OC. normative analysis because it describes what gasoline policy ought to be. D. positive analysis because it makes a value judgment.
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what is the difference between a positive statement and a normative statement?
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Four students from your economics class are sitting in a local restaurant discussing the market for coffee. Below are quotes from each of the four students. All of the following quotes are logically correct except one. Which quote indicates incorrect economic analysis? A. Nicholas: "If Brazil is hit hard by such a severe freeze that half of its crop is wiped out, then the price of coffee will probably rise." B. Kendra: "If the price of caffeinated soft drinks such as Mountain Dew went down, then consumer demand for coffee would go down since they're substitutes for each other." C. Sergei: "If the demand for coffee were to increase, then I would expect the price to rise, which would then cause the demand to fall back down to its original position." D. Tasha: "If coffee drinkers expect the price of coffee to rise next month, then current demand will go up and lead to a price increase this month."
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