Indicate whether each of the following is a positive or normative economic statement: I. The imposition of a price ceiling below equilibrium price will lead to a shortage of housing. II. The local government should control the rate of increase in rents so that low-income residents are not forced to move from the area
Statement I is a positive economic statement because it is testable.
Statement II is a normative economic statement because it reflects a value judgment.
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When a competitive equilibrium is achieved in a market
A) the total net benefit to society is maximized. B) the total benefits to consumers are equal to the total benefits to producers. C) economic surplus equals the deadweight loss. D) all individuals are better off than they would be if a price ceiling or price floor was imposed by government.
When OPEC meets to set production levels, this organization is playing a
A) negative sum game. B) cooperative game. C) non-cooperative game. D) reaction function game.
Which of the following is not counted as a part of GDP?
a. the purchase of 100 shares of AT&T stock by your grandfather b. the purchase of a snow plough by the city of Minneapolis c. the unsold additions to inventory at an appliances store d. the purchase of a loaf of bread by a consumer
Which of the following is not a component of GDP in the expenditures approach?
A. Government purchases B. Workers' wages and other compensation C. Gross private domestic investment D. The difference between exports and imports