Principles of Economics 2e
2nd Edition
ISBN: 9781947172364
Author: Steven A. Greenlaw; David Shapiro
Publisher: OpenStax
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Textbook Question
Chapter 2, Problem 23CTQ
Do economists have any particular expertise at making normative arguments? In other words, they have expertise at making positive statements (i.e., what will happen) about some economic policy, for example, but do they have special expertise to judge whether or not the policy should be undertaken?
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Do economists have any particular expertise at making normative arguments? In other words, they have expertise at making positive statements about some economic policy, for example, but do they have special expertise to judge whether or not the policy should be undertaken?
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what is the difference between a positive statement and a normative statement?
Chapter 2 Solutions
Principles of Economics 2e
Ch. 2 - Suppose Alphonsos town raised the price of bus...Ch. 2 - Return to the example in Figure 2.4. Suppose there...Ch. 2 - Could a nation be producing in a way that is...Ch. 2 - What are the similarities between a consumers...Ch. 2 - Individuals may not act in the rational,...Ch. 2 - Would an op-ed piece in a newspaper urging the...Ch. 2 - Would a research study on the effects of soft...Ch. 2 - Explain why scarcity leads to tradeoffs.Ch. 2 - Explain why individuals make Choices that are...Ch. 2 - What is comparative advantage?
Ch. 2 - What does a production possibilities frontier...Ch. 2 - Why is a production possibilities frontier...Ch. 2 - Explain why societies cannot make a choice above...Ch. 2 - What are diminishing marginal returns?Ch. 2 - What is productive efficiency? Allocative...Ch. 2 - What is the difference between a positive and a...Ch. 2 - Is the economic model of decision-making intended...Ch. 2 - What are four responses to the claim that people...Ch. 2 - Suppose Alphonsos town raises the price of bus...Ch. 2 - During the Second World War, Germanys factories...Ch. 2 - It is clear that productive inefficiency is a...Ch. 2 - What assumptions about the economy must he true...Ch. 2 - Do economists have any particular expertise at...Ch. 2 - If the price of a magazine is 4 each, what is the...Ch. 2 - If the price of a pie is 12, what is the maximum...Ch. 2 - Draw Maries budget constraint with pies on the...Ch. 2 - What is Maries opportunity cost of purchasing a...
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- Economics is a discipline that is divided into two broad branches, which are they?arrow_forwardTrue/false/explain. Economic models must mirror reality or they are of no value. When economists make normative statements, they are more likely to be acting as scientists.arrow_forwardWhat is the difference between positive and normative economic analysis? Give anexample for each.arrow_forward
- In economics, the difference between normative and positive is that:arrow_forwardWhy 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_forwardLocal government bans on plastic grocery bags due to environmental concerns have led to increased emergency room visits and deaths related to harmful bacteria such as E. coli, as many people do not wash their bags after each use. Which of the following best characterizes the statement? The statement demonstrates that even when government policies are enacted with good intentions, they do not always guarantee good outcomes due to unintended consequences and secondary effects. The statement demonstrates that normative economics is often confused with positive economics. The statement is an example of the fallacy of composition because all foods do not contain harmful bacteria. The statement shows that all environmental regulations have benefits that exceed the costs.arrow_forward
- Is economics a science?What are you most excited to learn about in economics?What comes to mind when you think about macroeconomics and microeconomics?arrow_forwardThe 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_forwardDifferentiate between normative and positive economics ?arrow_forward
- What is the difference between positive and normative analysis? Which of the following statements would entail positive analysis, and which normative analysis? Internet auction companies will erode the profits of local automobile dealerships. The government should impose special taxes on sales of merchandise made over the Internet.arrow_forwardIn what ways is economics a science and why do economists make assumptions?arrow_forwardFind one positive or one normative statement. Explain how you know they are either a positive or normative statement.arrow_forward
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