Provide two microeconomic statements and two macroeconomic statements. Classify your statements as positive or normative, and explain your classifications
What will be an ideal response?
Microeconomic statements are: Fewer deep water oil wells should be drilled in the Gulf of Mexico. If less oil is produced, the price of oil will rise. The first statement is normative because it relies on what the person thinks "should" be done. The second statement is positive because it is possible to test the effect of less oil being produced.
Macroeconomic statements are: The currently unemployment rate is too high. The current unemployment rate is higher for blacks than for whites. The first statement is normative because it depends on what is deemed "too high." The second statement is positive because it can be checked to determine its validity.
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The dollar demand curve in the foreign exchange market is:
A) vertical. B) downward sloping. C) upward sloping. D) horizontal.
The public choice model can be used to examine voting models that contrast the manner in which collective decisions are made by governments (state, local, and federal) and the manner in which individual choices are made in markets
Which of the following descriptions is consistent with the difference between collective decision-making and decision-making in markets? A) Individuals are less likely to see their preferences represented in the outcomes of government policies than in the outcomes of markets. B) The cost of a government policy is determined by a majority vote of members of the public; decisions made in markets are based on individual willingness to pay. C) Choices made through government policies are more important than decisions individuals make through markets. D) Everyone who votes must agree with a decision made collectively through government, but in markets individuals can make their own choices.
Which of the following could not create barriers to entry?
a. Negative network externalities b. Ownership of essential inputs c. Economies of scale d. All of the above could create barriers to entry
Since 1970, has the distribution of income in the US become more equal, less equal, or remained unchanged?