Which of the following statements concerning the distinction between positive and normative economics is TRUE?
A) Positive statements are concerned with what is, while normative statements are concerned with what someone thinks should be.
B) Positive statements are concerned with what people think, while normative statements are concerned with what people do.
C) Positive statements are true while normative statements are false.
D) Positive statements are concerned with what is while normative statements are concerned with what will be.
A
You might also like to view...
Suppose that the government imposes a $2 a cup tax on coffee. What de-termines by how much Starbucks will raise its price? How will the quantity of coffee bought in coffee shops change? Will this tax raise much revenue?
What will be an ideal response?
Which of the following accounts for approximately three-fourths of all welfare spending?
a. the school lunch program b. the earned income tax credit c. unemployment compensation and workers' compensation combined d. "in-kind" transfers e. cash transfers
If makers of snake anti-venom implement significant price increases, it is unlikely to significantly affect the use of anti-venom for treating poisonous snakebites. The demand for anti-venom is: a. elastic
b. inelastic. c. unit elastic. d. unit inelastic.
The goal of libertarianism is to
a. redistribute income based on the assumption of diminishing marginal utility. b. redistribute income in order to maximize the well-being of the worst-off person in society. c. punish crimes and enforce voluntary agreements but not to redistribute income. d. measure happiness and satisfaction.