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- If the price of a pie is 12, what is the maximum number of pies she could buy in a week?Do economists have any particular expertise at making normative arguments? In other words, they have expertise at making positive statements (i.e., what will happen) about some economic policy, for example, but do they have special expertise to judge whether or not the policy should be undertaken?Would a research study on the effects of soft drink consumption on childrens cognitive development he a positive or normative statement?
- What is the difference between a positive and a normative statement?Emily buys an air conditioner that costs $700. Because the air in her home is cleaner, its use saves her $250 in curtain cleaning costs over the lifetime of the air conditioner. In money terms, what is the opportunity cost of the air conditioner?
