Chapter 1, Problem 4CYU

a)

To determine

The question requires us to identify the positive or normative statements.

Answer to Problem 4CYU

The given statement is a normative statement.

Explanation of Solution

The given statement is representing a normative statement as it demands what society should do to prevent the people from engaging in harmful personal behavior. Such statements do not have an exact right answer because answer for such questions vary with personal perspectives. For example, preventing people from skydiving and mountaineering is good or bad? The answer will depend on personal perspectives as few people enjoy these activities while others have fear about it.

Economics Concept Introduction

In positive economics, economic analysis help in getting the answer as exactly it is or the way it is. Such analyses have definite right or wrong answers. On the other hand, the economic analysis that tries to find the solution based on the ‘how the economy should be’ approach is considered normative economics.

b)

To determine

The question requires us to identify the positive or normative statements.

Answer to Problem 4CYU

The given statement is a positive statement.

Explanation of Solution

The given statement is a positive statement because it is representing a fact which is true as engagement in dangerous personal behavior will definitely impose social or medical costs.

Economics Concept Introduction

In positive economics, economic analysis help in getting the answer as exactly it is or the way it is. Such analyses have definite right or wrong answers. On the other hand, the economic analysis that tries to find the solution based on the ‘how the economy should be’ approach is considered normative economics.