Economics (Book Only)
12th Edition
ISBN: 9781285738321
Author: Roger A. Arnold
Publisher: Cengage Learning
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Question
Chapter 2, Problem 6QP
(a)
To determine
Explain the given statement within the
(b)
To determine
Explain the given statement within the PPF framework.
(c)
To determine
Explain the given statement within the PPF framework.
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Which of the following is a normative statement?
Higher expenditures on health care will reduce infant mortality rates.
To improve our economic security, we should reduce our dependence on oil imports.
Increased defense spending will lead to higher budget deficits.
International trade leads to expanded consumption opportunities.
Free Markets are a way of connecting people
who may mutually benefit by exchanging goods
and services through a process of buying and
selling.
a) Identify a local/global problem that might be
caused by an economic policy that is based on
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economic and social outcome for society.
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).
Chapter 2 Solutions
Economics (Book Only)
Ch. 2.1 - Prob. 1STCh. 2.1 - Prob. 2STCh. 2.1 - Prob. 3STCh. 2.1 - Prob. 4STCh. 2 - Prob. 1VQPCh. 2 - Prob. 2VQPCh. 2 - Prob. 3VQPCh. 2 - Prob. 4VQPCh. 2 - Prob. 5VQPCh. 2 - Prob. 1QP
Ch. 2 - Prob. 2QPCh. 2 - Prob. 3QPCh. 2 - Prob. 4QPCh. 2 - Prob. 5QPCh. 2 - Prob. 6QPCh. 2 - Prob. 7QPCh. 2 - Prob. 8QPCh. 2 - Prob. 9QPCh. 2 - Prob. 10QPCh. 2 - Prob. 11QPCh. 2 - Prob. 12QPCh. 2 - Prob. 1WNGCh. 2 - Prob. 2WNGCh. 2 - Prob. 3WNGCh. 2 - Prob. 4WNGCh. 2 - Prob. 5WNGCh. 2 - Prob. 6WNGCh. 2 - Prob. 7WNGCh. 2 - Prob. 8WNGCh. 2 - Prob. 9WNG
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Similar questions
- Which of the following is a normative statement? Group of answer choices An increase in taxes will cause higher unemployment in an economy. An increase in tariffs in a country will increase the prices paid by domestic consumers. Income should be redistributed from the top 2 percent of wage earners to the low-income group. Income should be redistributed from the top 2 percent of wage earners to the low-income group. National debt imposes a burden on both current and future generations...arrow_forwardIdentify the normative economic statement from the following: Due to failing home prices and rising mortgage interest rates the amount of property foreclosures has increased. Interior designers should have the right to copyright their designs in order to promote innovation The government is considering increasing the gasoline tax to promote the use of public transportation The rising global demand for gasoline has led to the increase in the pace of crude oilarrow_forwardWhat does efficiency mean according to the PPF model?arrow_forward
- Explain three basic sources of deviations from PPP. Thanks.arrow_forward1. Economic models The following diagram presents a circular-flow model of a simple economy. The outer set of arrows (shown in green) shows the flow of dollars, and the inner set of arrows (shown in red) shows the corresponding flow of inputs and outputs. Markets for Goods and Services Firms Households Markets for Factors of Productionarrow_forwardWhich 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 evilarrow_forward
- The interactions of producers and consumers in individual markets are part of the study of microeconomics.normative economics.monetary economics.macroeconomics.consumer economics. Flag this Questionarrow_forwardWhat fundamental concept is behind the PPF model?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
- In the production possibilities frontier (Figure 1- Z on the vertical axis, H on the horizontal axis) shown below, for a rational individual who cares only about health ("H"), they will choose to produce the level of home goods and health associated with →N A B The PPF in the Grossman model. Point B Point C O Point A C →Harrow_forwardWhat would it take for a point beyond the PPF to ultimately become attainable? Name an important assumption associated with the PPF. Why are models such as the PPF which require broad assumptions used in economics? Economics - Need details Thank Youarrow_forwardQ3) Fill in the blanks: Indicate whether the following statement is a positive or normative statement: The Calgary Flames are more fun than the Oilers Q4) Fill in the blanks: Indicate whether the following statement is a positive or normative statement: Every year bookstores should expect to see larger numbers of students purchasing online textbooksarrow_forward
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