Microeconomics (2nd Edition) (Pearson Series in Economics)
2nd Edition
ISBN: 9780134492049
Author: Daron Acemoglu, David Laibson, John List
Publisher: PEARSON
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Question
Chapter 1, Problem 3Q
To determine
Nature of the statements in terms of positive and negative.
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What is economics?
A social science that teaches one how to cope with scarcity.
A discipline that quantifies the values of assets.
A quantitative science to analyze business cycles.
A science that teaches firms and individuals how to maximize profits.
Economics is the social science that studies the choices that individuals, businesses, governments, and entire societies make as they cope with ________, the incentives that influence those choices, and the arrangements that coordinate them.
Question 12 of 23
Classify each of the statements as an example of positive or normative analysis..
The
sugar quota in the United States costs consumers $6.08 billion a year.
Positive
Higher tariffs on imported automobiles would decrease the demand for Normative
foreign made cars.
International trade should be be limited because it can cause some workers
Positive
to lose their jobs.
International trade makes some people better off and some people Normative
worse off.
The U.S. should impose import quotas in the market for consumer
Normative
electronics to help domestic workers.
The sugar quota in the U.S. is good public policy and should be
Positive
made stronger.
Answer Bank
Normative
Positive
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Microeconomics (2nd Edition) (Pearson Series in Economics)
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- It's a positive or normative statement? explain?arrow_forwardAnswer ONE of the following two questions: C.1. Can economics help us to understand, and deal with, the prospect of climate change due to human activities? Your answer should include reference to at least three of the following aspects of the problem: a) A carbon tax vs cap and trade b) The UK's legal commitment to reduce net carbon emissions to zero by 2050 c) Assessing costs to future generations d) Bargaining over climate change e) Environmental dynamics C.2. Is globalisation a force for good in the world economy? Discuss with respect to at least three of the following areas: a) Comparative advantage and gains from trade b) Trade and growth c) Migration d) Winners and losers from globalisation e) Brexit or COVID-19arrow_forwardIdentify from the situation positive and normative economics and give your reasons.arrow_forward
- Which 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_forwardSuppose that one summer the weather is very hot. How does this event affect the market for ice cream? And How a decrease in supply of ice cream affects the equilibrium price and quantity? Draw the graph according to the situations above. Which of the following statements are examples of positive economic analysis? Which are examples of normative analysis?a. The inheritance tax should be repealed because it is unfair.b. Allowing Chile to join NAFTA would cause wine prices in the United States to drop.c. The first priorities of the new regime in the Democratic Republic of Congo (DRC, formerly Zaire) should be to rebuild schools and highways and to provide basic health care.arrow_forwardPositive or Normative?arrow_forward
- 1. Which of the following statements is a normative as opposed to a positive economic statement? A)If the price of cars goes up, people buy fewer cars. B)When a government prints too much money, inflation tends to rise. C)Labor unions should be allowed to organize in every country. D)Consumer spending helps to create jobs. 2. The production possibilities curve shifts outward when A)there is an increase in resources or technology .B)we produce more consumption goods over productive investment in equipment. C)the economy is producing efficiently. D)the law of increasing additional cost takes hold.arrow_forwardExplain the difference between positive and normative analysis, backing your explanation with examples.arrow_forward
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