Essentials of Economics (MindTap Course List)
8th Edition
ISBN: 9781337091992
Author: N. Gregory Mankiw
Publisher: Cengage Learning
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Chapter 2, Problem 6PA
To determine
Positive and normative statements.
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Clasify each of the following statements as positive,or normative.Explain.a.Society faces a short-run trade-off between inflation and unemployment.b.A reduction in the rate of money growth will reduce the rate of inflation.c.The Federal Reserve should reduce the rate of money growth.d.Society ought to require welfare recepients to look for jobs.e.Lower tax rate encourage more working and more saving.
Classify each of the following statements as positive or normative. Explain.
Society faces a short-run tradeoff between inflation and unemployment.
A reduction in the rate of growth of money will reduce the rate of inflation.
The Federal Reserve should reduce the rate of growth of money.
Society ought to require welfare recipients to look for jobs. e. Lower tax rates encourage more work and more saving.
##Ecinomics please Classify each of the following statements as positive or normative. Explain.a. Society faces a short-run trade-off between inflation and unemployment.b. A reduction in the rate of money growth will reduce the rate of inflation.c. The Federal Reserve should reduce the rate of money growth.d. Society ought to require welfare recipients to look for jobs.e. Lower tax rates encourage more work and more saving.?
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- The government should reduce the petrol prices as a solution to the problem of inflation. Determine, what type of statement is this? a. Normative statement b. Positive statement c. Negative statement d. Mixed statementarrow_forwardA. INDICATE WHICH OF THE FOLLOWING IS A POSITIVE OR NORMATIVE STATEMENT I. "Earnings increase with education because education raises a worker's productivity."II. The taxes imposed on gasoline in Barbados is excessive and inequitableto motorists.III. A decrease in income will result in a fall in the demand for motorcycles.IV. Rising flour prices will increase the price of bread.V. The government is more concerned with inflation than unemployment.VI. People are worried about the effects of joining the CSME.arrow_forwardWhich of the following statements most likely lies within the realm of microeconomics? A. Unemployment rises during a recession and falls during an expansion. B. An increase in government spending will increase the aggregate demand for goods and services in the economy. C. A rapid acceleration of the supply of money may create inflation. D. An increase in labor costs will increase the additional cost of producing another bus.arrow_forward
- Classify each of the following statements as positive or normative. Explain. Society faces a short-run trade-off between inflation and unemployment. A reduction in the rate of growth of money will reduce the rate of inflation. The Federal Reserve should reduce the rate of growth of money. Society ought to require welfare recipients to look for jobs. Lower tax rates encourage more work and more saving.arrow_forwardb. Classify each of the following statements as positive or normative. Explain.i. Bahamas faces a trade-off between inflation and unemployment ii. The ECCB should reduce the interest rates iii. St. Lucia ought to provide a pension for all citizens iv. Higher tax rates discourage savings an working.arrow_forward42. In Mark Skousen’s article, “What is Economics, Anyway?,” he bemoans the apparent fact that the modern definition of economics is incomplete. What does he say is missing? A. relationship between means and endsB. the concept of scarcityC. the process of transformation of resourcesD. allocation toward competing ends 43. The broken window fallacy a. explains why inflation is so high.b. is a justification for the government to print more money.c. is illustrated when a government program is justified not on its merits but on thenumber of jobs it will create.d. has nothing to do with public policy. 44. Capitalism was originally a smear used by which socialist founder? A. Adam SmithB. Jean-Jacques RousseauC. Vladimir LeninD. Karl MarxE. Paul Krugman 45. How does subjective value make “gains from trade” possible? 46. Think back to August 6, 1945. The United States has just dropped an atomic weapon on the city of Hiroshima killing tens of thousands of Japanese and devastating the…arrow_forward
- Classify each of the following statements as positive or normative: Society faces a short-run tradeoff between inflation and unemployment. A reduction in the rate of growth of money will reduce the rate of inflation. The Federal Reserve should reduce the rate of growth of money. Indiana should require welfare recipients to look for jobs. Lower income tax rates encourage more work and more saving.arrow_forwardNormative economics is: a. An investigation or statement about the norms and culture of other countries. b. An investigation or statement that attempts to describe how the world should be or ought to be. c. An investigation or statement about the positive benefits of a given country.arrow_forwardDetermine whether each of the following statements is positive or normative. (Remember that apositive statement isn’t necessarily correct; it justmakes a factual claim rather than a moral judgment.People who pay their bills on time are lesslikely than others to get into debt.b. Hard work is a virtue.c. Everyone should pay his or her bills on time.d. China has a bigger population than any othercountry in the world.e. China’s One-Child Policy (which limitsfamilies to one child each) helped to spur thecountry’s rapid economic growth.f. Lower taxes are good for the countryarrow_forward
- "The Consumer Price Index increased by 4.2 percent in the first quarter of this year." What type of statement is this? a. normative b. negative c. positive d. subjective e. biasedarrow_forwardi. Classify the following issues as relating to microeconomics or macroeconomics. a) a family's decision about how much income to save b) the effect of government regulations on automobile emissions c) the impact of higher national savings on economic growth d) a firm's decision about how many workers to hire ii. Classify each of the following statements as positive or normative. a) Society faces a short-run trade-off between inflation and unemployment. b) A reduction in the rate of money growth will reduce the rate of inflation. c) Society ought to require welfare recipients to look for jobs. d) Lower tax ates encourage more work and more saving. Page 1 of 3 Suppose that at the beginning of the year the Accountant of the School of Business defines and outlines what he considers to be his priority expenditure ii. areas as follows. item Cost(Ghs) Reference Textbooks 100,000 Office Spaces for lecturers 50,000 Refurbishment of School Auditorium 50,000 Projectors for Lecture Halls 40,000…arrow_forwardWhich of the following statements are positive, and which are normative? a. The minimum wage creates unemployment among young and unskilled workers. b. The minimum wage ought to be abolished.arrow_forward
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