Exploring Economics
7th Edition
ISBN: 9781305465596
Author: Sexton
Publisher: Cengage
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Chapter 1, Problem 8P
To determine
(a)
The kind of statement (normative/ positive or both) it is-higher tax rate would generate increased tax revenues and those extra tax revenues should be used to give more government aid to the poor.
To determine
(b)
The kind of statement (normative/ positive or both) it is-the study of physics is more valuable than the study of sociology, but both should be studied by all college students.
To determine
(c)
The kind of statement (normative/ positive or both) it is-the increase in the price of corn will decrease the amount of corn purchased. However, it will increase the amount of wheat purchased.
To determine
(d)
The kind of statement (normative/ positive or both) it is-A decrease in price of butter will increase the amount of butter purchased, but that would be bad because it would increase American's cholesterol levels.
To determine
(e)
The kind of statement (normative/ positive or both) it is-The birth rate is reduced as economies urbanize, but it also leads to a decreased average age of developing countries' population.
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