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.
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.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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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.
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