PRIN OF MICROECONOMICS
2nd Edition
ISBN: 9780393914085
Author: coppock
Publisher: Norton, W. W. & Company, Inc.
expand_more
expand_more
format_list_bulleted
Question
Chapter 2, Problem 1QR
To determine
Definition of positive economic statement and give an example.
Expert Solution & Answer
Explanation of Solution
Positive economics is a perspective that concerns with the description and explanation of economic phenomena. It is concerned with “what is” analysis. The normative statement is the value judgment regarding a phenomenon. In simple words, it states what a phenomenon ought to be.
The statement “income tax system collects a lower percentage of income of the poor” explains the situation as it is, and it is a fact based statement. Therefore, this is an example of positive economic statement. The statement “reduction in the tax rates of rich makes the tax system fairer” explains that the reduction in tax rate of the richer leads to tax system failure. It is an opining based statement. Therefore, this is a normative statement.
Economics Concept Introduction
Positive economic statement: A statement that is based on objective and fact is termed as a positive economic statement.
Normative economic statement: A statement that is subjective and value based or opinion based is termed as a normative economic statement.
Want to see more full solutions like this?
Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!
Students have asked these similar questions
Recent research indicates potential health benefits associated with coffee consumption, including a potential reduction in
the incidence of liver disease. Simultaneously, new technology is being applied to coffee bean harvesting, leading to cost
reductions in coffee production. How will these developmentsaffect the demand and supply of coffee? How will the
equilibrium price and quantity of coffee change? Use both words and graphs to explain.
Recent research indicates potential health benefits associated with coffee consumption, including a potential reduction in
the incidence of liver disease. Simultaneously, new technology is being applied to coffee bean harvesting, leading to cost
reductions in coffee production. How will these developmentsaffect the demand and supply of coffee? How will the
equilibrium price and quantity of coffee change? Use both words and graphs to explain.
► What are the 95% confidence intervals for the intercept and
slope in this regression of college grade point average (GPA)
on high school GPA?
colGPA = 1.39 + .412 hsGPA
(.33) (.094)
Knowledge Booster
Similar questions
- G Interpret the following estimated regression equations: wagehr = 0.5+ 2.5exper, where wagehr is the wage, measured in £/hour and exper is years of experience, colGPA = 1.39.412 hsGPA where colGPA is grade point average for a college student, and hsGPA is the grade point average they achieved in high school, cons 124.84 +0.853 inc where cons and inc are annual household consumption and income, both measured in dollars What is (i) the predicted hourly wage for someone with five years of experience? (ii) the predicted grade point average in college for a student whose grade point average in high school was 4.0, (iii) the predicted consumption when household income is $30000? =arrow_forward1. Solving the system of inequalities: I≥3 x+y1 2. Graph y=-2(x+2)(x-3) 3. Please graph the following quadratic inequalities Solve y≤ -1²+2+3arrow_forwardNot use ai pleasearrow_forward
- not use ai pleasearrow_forwardWhat are the key factors that influence the decline of traditional retail businesses in the digital economy? 2. How does consumer behavior impact the success or failure of legacy retail brands? 3. What role does technological innovation play in sustaining long-term competitiveness for retailers? 4. How can traditional retailers effectively adapt their business models to meet evolving market demands?arrow_forwardProblem 1.1 Cyber security is a very costly dimension of doing business for many retailers and their customers who use credit and debit cards. A recent data breach of U.S.-based Home Depot involved some 56 million cardholders. Just to investigate and cover the immediate direct costs of this identity theft amounted to an estimated $62,000,000, of which $27,000,000 was recovered by insurance company payments. This does not include indirect costs, such as, lost future business, costs to banks, and cost to replace cards. If a cyber security vendor had proposed 8 years before the breach that a $10,000,000 investment in a malware detection system could guard the company's computer and payment systems from such a breach, would it have kept up with the rate of inflation estimated at 4% per year?arrow_forward
- Not use ai pleasearrow_forwardAnalyze financial banking products from the Asset-Based Financial Products side (like credit cards, loans, mortgages, etc.). Examine aspects such as liquidity, risk, and profitability from a company and an individual point of view. Ensure that the interventions demonstrate analytical skills and clearly express the points of view regarding the topic.arrow_forwardprovide source where information was retrieved NAME OF SCHOOL: Florida Polytechnical college ADDRESS: PRIVATE OR PUBLIC: ENTRY REQUIREMENTS - GPA, SAT/ ACT SCORES: IN STATE TUITION COST: DORMITORY COST: OFF CAMPUS HOUSING OPTIONS: AVERAGE MONTHLY RENT FOR A ROOM in the area: MEAL PLAN: Do they have them? Are they mandatory for freshmen? How much $: CAMPUS SIZE: (don't put acres - is it a small, medium, or large campus?) TEACHER STUDENT RATIO/CLASS SIZE: NUMBER OF UNDERGRADUATE (freshmen, soph, junior, seniors) STUDENTS ON CAMPUS: FINANCIAL AID/SCHOLARSHIPS OPPORTUNITIES: ACCEPTANCE RATE: GRADUATION RATE: ONLINE OPTION? BUSINESS DEGREES: (list them) ACADEMIC SUPPORT - TUTORING: JOB PLACEMENT/CAREER SERVICES: what % of students get lined up with jobs right out of college with the school's help? INTERNSHIP OPPORTUNITIES: Paid? Unpaid? STUDY ABROAD PROGRAMS: Do they exist? How much $? SPORTS: Competitive - D1, D2, D3, etc? Intramural? (non-competitive sports opportunities) CLUBS: How many?…arrow_forward
- Explain the following: How is 4 to 5 a 22% increase? How is 100 to 80 a 22% decrease? Not pictured: How is 100 to 90 a 11% decrease? How is 100 to 50 a 67% decrease?arrow_forwardWithout Trade Production Consumption With Trade Production Everglades Denali Shorts (Millions of Almonds Shorts Almonds pairs) (Millions of pounds) (Millions of pairs) (Millions of pounds) 12 16 5 30 12 16 5 30 64 0 0 20 Trade action Imports 13 ▼ Exports 39▾ Imports 13 ▼ Exports 39 Consumption Gains from Trade Increase in Consumptionarrow_forwardPractice: Their labor forces are each capable of supplying four million hours per week that can be used to produce shorts, almonds, or some combination of the two. Country Shorts Almonds (Pairs per hour of labor) (Pounds per hour of labor) Everglades 4 16 Denali 5 10 Suppose that initially Denali uses 1 million hours of labor per week to produce shorts and 3 million hours per week to produce almonds, while Everglades uses 3 million hours of labor per week to produce shorts and 1 million hours per week to produce almonds. As a result, Everglades produces 12 million pairs of shorts and 16 million pounds of almonds, and Denali produces 5 million pairs of shorts and 30 million pounds of almonds. Assume there are no other countries willing to engage in trade, so, in the absence of trade between these two countries, each country consumes the amount of shorts and almonds it produces. Everglades's opportunity cost of producing 1 pair of shorts is4 pounds of…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Economics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage Learning
Microeconomics: Principles & PolicyEconomicsISBN:9781337794992Author:William J. Baumol, Alan S. Blinder, John L. SolowPublisher:Cengage Learning
Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning
Microeconomics: Principles & Policy
Economics
ISBN:9781337794992
Author:William J. Baumol, Alan S. Blinder, John L. Solow
Publisher:Cengage Learning