The principal distinction between positive analysis and normative analysis is that
A) positive analysis is useful and normative analysis is not useful.
B) positive analysis is optimistic and normative analysis is neutral.
C) economists always agree on the conclusions of positive analysis but could disagree on the conclusions of normative analysis.
D) positive analysis tells us "what is," but normative analysis tells us "what ought to be."
D
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Discrimination occurs when an employer hires a member of one group when another applicant, who is a member of a different group with different characteristics, has better qualifications and is likely to be more productive
Indicate whether the statement is true or false
Refer to Figure 3-8. The graph in this figure illustrates an initial competitive equilibrium in the market for sugar at the intersection of D1 and S1 (point A)
If there is an increase in the price of fertilizer used on sugar cane and there is a decrease in tastes for sugar-sweetened soft drinks, how will the equilibrium point change? A) The equilibrium point will move from A to B. B) The equilibrium point will move from A to C. C) The equilibrium point will move from A to E. D) There will be no change in the equilibrium point.
Sam quits his job as an airline pilot and opens his own pilot training school. He was earning $40,000 as a pilot. He withdraws $10,000 from his savings where he was earning 6 percent interest and uses the money in his new business. He uses a building he owns as a hanger and could rent it out for $5,000 per year. He rents a computer for $1,200, buys office supplies for $500, rents an airplane for
$6,000 . pays $1,300 for fuel and maintenance, and hires one worker for $30,000 . Sam's total revenue from pilot training classes this year equaled $90,400 . Sam's explicit costs this year equals: a. $84,400. b. $39,000. c. $55,000. d. $45,600. e. $40,000.
If countries that imported goods and services from the United States went into recession, we would expect that U.S. net exports would
a. rise, making aggregate demand shift right. b. rise, making aggregate demand shift left. c. fall, making aggregate demand shift right. d. fall, making aggregate demand shift left.