Principles of Macroeconomics, Student Value Edition Plus MyLab Economics with Pearson eText -- Access Card Package (12th Edition)
12th Edition
ISBN: 9780134421193
Author: Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher: PEARSON
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Chapter 1, Problem 3.2P
To determine
Positive and normative statements.
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Which of the following statements are examples of positive economic analysis? Which are examples of normative analysis?
c. Florida should devote all revenues from its state lottery to improving public education.
d. Eliminating the trade embargo with Cuba would increase the number of Cuban cigars available in the United States.
e. As a public safety measure, the state of Texas should repeal legislation that allows people with concealed handgun permits to carry concealed weapons on college campuses.
Which of the following statements are examples of positive economic analysis? Which are examples of normative analysis?
a. A devaluation of the U.S. dollar would increase exports from the United States.
b. Increasing the federal tax on gasoline would cause shipping costs in the United States to increase.
c. Florida should devote all revenues from its state lottery to improving public education.
Find one positive or one normative statement. Explain how you know they are either a positive or normative statement.
Chapter 1 Solutions
Principles of Macroeconomics, Student Value Edition Plus MyLab Economics with Pearson eText -- Access Card Package (12th Edition)
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- 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 MacBook Airarrow_forward1. 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_forwardProblem 1 Is each of the following a positive or normative statement? If it is a positive statement, write a normative statement that addresses the same issue. If it is a normative statement, write a positive statement that addresses the same issue. a.) Decreasing tax rates causes total tax revenue to increase. b.) The U.S. government should eliminate seat belt requirements for new vehicles. c.) The College of New Jersey should decrease tuition and fees for students. d.) If a state adopts "Right to Work" laws, wages will go down.arrow_forward
- Why is it important to be able to distinguish positive from normative statements about economic policy? Question 8 options: Positive statements are always true and are the basis of economic policy while normative statements are false and should NEVER be used. Positive statements help us understand the value judgments toward a particular policy, while normative statements reflect the economy's response. Positive statements help us understand the economy's response to a particular policy, while normative statements reflect value judgments. Positive statements help us understand the good results of a policy change, and normative statements help us understand the negative results.arrow_forwardWhat is the difference between positive and normative economics? Why are positive questions easier to answer than normative questions?arrow_forwardExplain the difference between positive and normative analysis. Provide an example of a normative statement or an example of a positive statement from a recent news story.arrow_forward
- Can you confirm that I am correct with these positive and normative statements: Positive statement: When oil production slows in Texas, employment and tax revenues decline, and budget cuts at the state and local levels often follow. (Craymer has estimated that the state loses $85 million per year for every $1 decrease in oil prices.) Normative statement:If Russia agrees to production cuts and COVID-19 goes dormant in the hot summer months, as some experts expect, Texas’ coffers will have time to recover before lawmakers convene in 2021 to write a new budget. Or would this be a normative statement:Experts said Texas is better positioned to handle an oil price collapse today thanks to a diversified economy. The last collapse in oil prices, in 2014, also forced the industry to cut costs and otherwise become more efficient. But University of Texas at Austin energy resources professor Michael Webber said COVID-19 throws an unprecedented economic variable into the mix.arrow_forwardIn economics, the difference between normative and positive is that: -normative economics focuses on individual markets -Normative economics looks at the "bigger picture" -normative economics is an unbiased attempt to understand how the economy works -normative economicsarrow_forwardQuestion 04: Positive or Normative statements? Indicate whether each of the following statements is a positive or normative economic statement: Statement from our Illinois Senators websites… Dick Durbin's website: America now owes over $14 trillion to our creditors. Referring to the above statement Durbin states: This is simply unsustainable. Tammy Duckworth's website: The Family and Medical Leave Act, known as FMLA, [gives] some new parents the opportunity to take up to 12 weeks of unpaid leave. Duckworth later states: we should pass common-sense legislation to make the workplace more accommodating for working parents. Question 5 options: A) in order: positive, positive, normative, normative B) in order: normative, positive, normative, positive C) in order: positive, normative, positive, normative D) in order: normative, normative, positive, positivearrow_forward
- The statement in a newspaper that "consumer prices rose last month by 1 percent, and if this trend continues, the annual rate of inflation will be 12 percent for the year" is an example of a normative economic statement. 1) True 2) Falsearrow_forward3. Is each of the following statements positive or normative? If the statement is positive, write a normative statement about the same topic. If the statement is normative, write a positive statement about the same topic. a.) For-profit prisons have led to a higher incarceration rate in the United States. b.) The Washington Commanders should have chosen a cooler mascot. c.) The use of human subjects in experiments should be subject to less oversight. d.) If the U.S. privatized Social Security, it would reduce government deficits in the long run. e.) Students should not be required to take exams.arrow_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_forward
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