Bundle: Principles of Economics, Loose-leaf Version, 8th + LMS Integrated MindTap Economics, 2 terms (12 months) Printed Access Card
8th Edition
ISBN: 9781337607735
Author: N. Gregory Mankiw
Publisher: Cengage Learning
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Chapter 2, Problem 6PA
To determine
Positive and normative statements.
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Clasify each of the following statements as positive,or normative.Explain.a.Society faces a short-run trade-off between inflation and unemployment.b.A reduction in the rate of money growth will reduce the rate of inflation.c.The Federal Reserve should reduce the rate of money growth.d.Society ought to require welfare recepients to look for jobs.e.Lower tax rate encourage more working and more saving.
Classify each of the following statements as positive or normative. Explain.
Society faces a short-run tradeoff between inflation and unemployment.
A reduction in the rate of growth of money will reduce the rate of inflation.
The Federal Reserve should reduce the rate of growth of money.
Society ought to require welfare recipients to look for jobs. e. Lower tax rates encourage more work and more saving.
The government should reduce the petrol prices as a solution to the problem of inflation. Determine, what type of statement is this?
a.
Normative statement
b.
Positive statement
c.
Negative statement
d.
Mixed statement
Chapter 2 Solutions
Bundle: Principles of Economics, Loose-leaf Version, 8th + LMS Integrated MindTap Economics, 2 terms (12 months) Printed Access Card
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- A. INDICATE WHICH OF THE FOLLOWING IS A POSITIVE OR NORMATIVE STATEMENT I. "Earnings increase with education because education raises a worker's productivity."II. The taxes imposed on gasoline in Barbados is excessive and inequitableto motorists.III. A decrease in income will result in a fall in the demand for motorcycles.IV. Rising flour prices will increase the price of bread.V. The government is more concerned with inflation than unemployment.VI. People are worried about the effects of joining the CSME.arrow_forwardWhich of the following statements most likely lies within the realm of microeconomics? A. Unemployment rises during a recession and falls during an expansion. B. An increase in government spending will increase the aggregate demand for goods and services in the economy. C. A rapid acceleration of the supply of money may create inflation. D. An increase in labor costs will increase the additional cost of producing another bus.arrow_forward42. In Mark Skousen’s article, “What is Economics, Anyway?,” he bemoans the apparent fact that the modern definition of economics is incomplete. What does he say is missing? A. relationship between means and endsB. the concept of scarcityC. the process of transformation of resourcesD. allocation toward competing ends 43. The broken window fallacy a. explains why inflation is so high.b. is a justification for the government to print more money.c. is illustrated when a government program is justified not on its merits but on thenumber of jobs it will create.d. has nothing to do with public policy. 44. Capitalism was originally a smear used by which socialist founder? A. Adam SmithB. Jean-Jacques RousseauC. Vladimir LeninD. Karl MarxE. Paul Krugman 45. How does subjective value make “gains from trade” possible? 46. Think back to August 6, 1945. The United States has just dropped an atomic weapon on the city of Hiroshima killing tens of thousands of Japanese and devastating the…arrow_forward
- b. Classify each of the following statements as positive or normative. Explain.i. Bahamas faces a trade-off between inflation and unemployment ii. The ECCB should reduce the interest rates iii. St. Lucia ought to provide a pension for all citizens iv. Higher tax rates discourage savings an working.arrow_forwardClassify each of the following statements as positive or normative: Society faces a short-run tradeoff between inflation and unemployment. A reduction in the rate of growth of money will reduce the rate of inflation. The Federal Reserve should reduce the rate of growth of money. Indiana should require welfare recipients to look for jobs. Lower income tax rates encourage more work and more saving.arrow_forwardNormative economics is: a. An investigation or statement about the norms and culture of other countries. b. An investigation or statement that attempts to describe how the world should be or ought to be. c. An investigation or statement about the positive benefits of a given country.arrow_forward
- I need some assistance with this question, thanks.arrow_forward"The Consumer Price Index increased by 4.2 percent in the first quarter of this year." What type of statement is this? a. normative b. negative c. positive d. subjective e. biasedarrow_forwardWhich of the following statements are positive, and which are normative? a. The minimum wage creates unemployment among young and unskilled workers. b. The minimum wage ought to be abolished.arrow_forward
- Which of the following is a normative economic statement? a. The national unemployment rate in January of this year was 5.5%. b. The government should commit to reducing income inequality. c. The inflation rate next year will be less than 3%. d. A reduction in the government deficit by 1% will make interest rates decrease 1%.arrow_forwardMicro VS Macroeconomics? Classify the following questions as Microeconomics or Macroeconomics and provide a justification for your choice. a) How will the market for melons be affected after Hurricane Dean? b) How much will the American economy grow this year? c) What are the factors which determine the choice that a person makes between buying a Honda Accord or a Toyota Corolla? d) What will the inflation rate be for Belize?arrow_forwardClassify each of the following statements as positive or normative. Explain. Bahamas faces a trade-off between inflation and unemployment The ECCB should reduce the interest rates St. Lucia ought to provide a pension for all citizens. 4.Higher tax rates discourage savings and workingarrow_forward
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