EBK MACROECONOMICS
7th Edition
ISBN: 8220106812686
Author: O'Brien
Publisher: PEARSON
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Chapter 1, Problem 1.3.8PA
To determine
Understanding positive and normative issues.
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Students have asked these similar questions
Why is it important to be able to distinguish positive from normative statements about economic policy?
Question 8 options:
Positive statements are always true and are the basis of economic policy while normative statements are false and should NEVER be used.
Positive statements help us understand the value judgments toward a particular policy, while normative statements reflect the economy's response.
Positive statements help us understand the economy's response to a particular policy, while normative statements reflect value judgments.
Positive statements help us understand the good results of a policy change, and normative statements help us understand the negative results.
Determine if the following statement is normative or positive: The government expenditure towards infrastructure, research and development and skills and jobs-training programs increases future productivity resulting in rising future output (i.e. GDP).
Which of this is a following is a normative statement:
Select one:
The correlation between the full moon and increased crime and wild animal attacks suggests werewolves are a concern in some areas
A car scrappage scheme will lead to fall in the price of second hand cars
A fall in incomes will lead to a rise in demand for the own-label supermarket foods
The movie industry is an evil
Chapter 1 Solutions
EBK MACROECONOMICS
Ch. 1.A - Prob. 1PACh. 1.A - Prob. 2PACh. 1.A - Prob. 3PACh. 1.A - Prob. 4PACh. 1.A - Prob. 5PACh. 1.A - What is the area of the triangle shown in the...Ch. 1.A - Prob. 7PACh. 1 - Prob. 1TCCh. 1 - Prob. 2TCCh. 1 - Prob. 1.1.1RQ
Ch. 1 - Prob. 1.1.2RQCh. 1 - Prob. 1.1.3PACh. 1 - Prob. 1.1.4PACh. 1 - Prob. 1.1.5PACh. 1 - Prob. 1.1.6PACh. 1 - Prob. 1.1.7PACh. 1 - Prob. 1.1.8PACh. 1 - Prob. 1.1.9PACh. 1 - Prob. 1.1.10PACh. 1 - Prob. 1.1.11PACh. 1 - Prob. 1.2.1RQCh. 1 - Prob. 1.2.2RQCh. 1 - Prob. 1.2.3RQCh. 1 - Prob. 1.2.4RQCh. 1 - Prob. 1.2.5PACh. 1 - Prob. 1.2.6PACh. 1 - Prob. 1.2.7PACh. 1 - Prob. 1.2.8PACh. 1 - Prob. 1.2.9PACh. 1 - Prob. 1.2.10PACh. 1 - Prob. 1.2.11PACh. 1 - Prob. 1.2.12PACh. 1 - Prob. 1.2.13PACh. 1 - Prob. 1.3.1RQCh. 1 - Prob. 1.3.2RQCh. 1 - Prob. 1.3.3RQCh. 1 - Prob. 1.3.4PACh. 1 - Prob. 1.3.5PACh. 1 - Prob. 1.3.6PACh. 1 - Prob. 1.3.7PACh. 1 - Prob. 1.3.8PACh. 1 - Prob. 1.3.9PACh. 1 - Prob. 1.3.10PACh. 1 - Prob. 1.3.11PACh. 1 - Prob. 1.4.1RQCh. 1 - Prob. 1.4.2RQCh. 1 - Prob. 1.4.3PACh. 1 - Prob. 1.4.4PACh. 1 - Prob. 1.1CTECh. 1 - Prob. 1.2CTE
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Similar questions
- What is the distinction between positive and normative economic analysis? Can you explain with both analyses please and thank you.arrow_forwardtrue or false Economic models must mirror reality or they are of no value. When economists make normative statements, they are more likely to be acting as scientists. If a country's worker can produce 5 hamburgers per hour and 10 bags of fries per hour, then absent trade with other countries,the price for 1 bag of fries is 2 hamburgers. If trade benefits one country, it's trading partner must be worse off due to the price of trade. If an advanced country has an absolute advantage in the production of everything(relative to certain less developed countries), the advanced country will benefit if it eliminates trade with less developed countries and becomes self sufficient.arrow_forwardWhich of the following normative criteria is concerned with the optimal mix of production among different uses of scarce resources? Allocative efficiency Production Efficiency Equity Which of the following normative criteria is concerned with who receives a given share of output produced? Allocative efficiency Production Efficiency Equity Which of the following normative criteria is concerned with the optimal production of a given level of output given scarce inputs. Allocative efficiency Production Efficiency Equity On which of the following normative criteria do market systems of distribution tend to do well? Allocative efficiency Production Efficiency Equity On which of the following normative criteria do egalitarian systems of distribution tend to do well? Allocative efficiency Production Efficiency Equityarrow_forward
- Which of the following statements are examples of positive economic analysis? Which are examples of normative analysis? a. A devaluation of the U.S. dollar would increase exports from the United States. b. Increasing the federal tax on gasoline would cause shipping costs in the United States to increase. c. Florida should devote all revenues from its state lottery to improving public education.arrow_forwardWhat we can conclude on the journal Methodology of Islamic Economics From Islamic Teachings to Islamic Economics ?arrow_forwardPlease answer botharrow_forward
- What is a positive statement? What is a normative statement? What is the difference between positive statements and normative statements? What is opportunity cost defined? Give two examples of opportunity cost of attending college?arrow_forwardWhich of the following statements are examples of positive economic analysis? Which are examples of normative analysis? c. Florida should devote all revenues from its state lottery to improving public education. d. Eliminating the trade embargo with Cuba would increase the number of Cuban cigars available in the United States. e. As a public safety measure, the state of Texas should repeal legislation that allows people with concealed handgun permits to carry concealed weapons on college campuses.arrow_forwardCan you confirm that I am correct with these positive and normative statements: Positive statement: When oil production slows in Texas, employment and tax revenues decline, and budget cuts at the state and local levels often follow. (Craymer has estimated that the state loses $85 million per year for every $1 decrease in oil prices.) Normative statement:If Russia agrees to production cuts and COVID-19 goes dormant in the hot summer months, as some experts expect, Texas’ coffers will have time to recover before lawmakers convene in 2021 to write a new budget. Or would this be a normative statement:Experts said Texas is better positioned to handle an oil price collapse today thanks to a diversified economy. The last collapse in oil prices, in 2014, also forced the industry to cut costs and otherwise become more efficient. But University of Texas at Austin energy resources professor Michael Webber said COVID-19 throws an unprecedented economic variable into the mix.arrow_forward
- Question 04: Positive or Normative statements? Indicate whether each of the following statements is a positive or normative economic statement: Statement from our Illinois Senators websites… Dick Durbin's website: America now owes over $14 trillion to our creditors. Referring to the above statement Durbin states: This is simply unsustainable. Tammy Duckworth's website: The Family and Medical Leave Act, known as FMLA, [gives] some new parents the opportunity to take up to 12 weeks of unpaid leave. Duckworth later states: we should pass common-sense legislation to make the workplace more accommodating for working parents. Question 5 options: A) in order: positive, positive, normative, normative B) in order: normative, positive, normative, positive C) in order: positive, normative, positive, normative D) in order: normative, normative, positive, positivearrow_forwardDiscuss the scientific approach adopted by economist in analyzing economic situationsarrow_forwardWhich would be a normative economic statement? CThe poverty rate hit a new high last year C Prices are increasing at a rate of 3 percent a year This administration needs to raise taxes to pay for childcare programs Retail sales were flat last month and continue on their downward trend « Previousarrow_forward
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