Survey of Economics (MindTap Course List)
Survey of Economics (MindTap Course List)
9th Edition
ISBN: 9781305260948
Author: Irvin B. Tucker
Publisher: Cengage Learning
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Chapter 1, Problem 8SQP
To determine

Analyze the positive versus normative arguments.

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Analyze the positive versus normative arguments in the following case. Give an example of positive statements that were used to support requiring air bags? What normative reasoning is used? "Technological advances continuously provide new high-tech options to save lives that ad to the price of cars, such as cameras, radar, and airbags. Air bag advocates say air bags will save lives and the government should require them in all cars. Air Bags add an estimated $600 to the cost of a car, compared to about $100 for a set of regular seat belts. Opponents argue that air bags are electronic devices that are subject to failure and have produced injuries and death. For example, air bags have killed both adults and children whose heads were within the inflation zone at the time of deployment. Opponents therefore believe the government should leave the decision of whether to spend an extra $600 or so for an air bag to the consumer. The role of the government should be limited to providing…
Which of the following would be the least likely thing an economist would study?          What new platforms are teens and young adults using to download music and movies?         What is the effectiveness of a new $50 million government campaign to keep teens from vaping?         What types of movies do children like to watch in the summer?         What are the health effects of new energy drinks on young consumers?
Stan Moneymaker needs 15 gallons of gasoline to top off his automobile’s gas tank. If he drives an extra eight miles (round trip) to a gas station on the outskirts of town, Stan can save $0.10 per gallon on the price of gasoline. Suppose gasoline costs $3.90 per gallon and Stan’s car gets 25 mpg for in-town driving. Should Stan make the trip to get less expensive gasoline? Each mile that Stan drives creates one pound of carbon dioxide. Each pound of CO2 has a cost impact of $0.02 on the environment. What other factors (cost and otherwise) should Stan consider in his decision making?
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