Positive statements are:
a. prescriptive, making claims about how the world ought to be.
b. descriptive, making claims about how the world is
c. optimistic, putting the best possible interpretation on things.
d. affirmative, justifying existing economic policy.
b
You might also like to view...
Traditionally, economists have considered culture, customs, and religion as
A) very important influences on the choices consumers make. B) subject to normative economic analysis rather than positive economic analysis. C) relatively unimportant factors in explaining the choices consumers make. D) important influences in explaining consumer choices in command economies but less important in market economies.
Refer to Figure 12-12. Consider a typical firm in a perfectly competitive industry that makes short-run profits. Which of the diagrams in the figure shows the effect on the industry as it transitions to a long-run equilibrium?
A) Panel A B) Panel B C) Panel C D) Panel D
Demand functions in the multiplicative form are most common for all of the following reasons except:
a. elasticities are constant over a range of data b. ease of estimation of elasticities c. exponents of parameters are the elasticities of those variables d. marginal impact of a unit change in an individual variable is constant e. c and d
Explain what a “cap and trade” program is and how it works. Does the United States have a cap and trade program? If so, is it successful?
What will be an ideal response?