State (a) a positive economic statement of your choice, and then (b) a normative economic statement relating to your first statement.
Answer:
a) The unemployment rate is 4.8%
b) the unemployment rate is too high
In general we treat "what is" statements as positive, "what should be" as normative, but keep an eye out for statements like "at full employment an increase in the production of pizzas should come at the cost of less robots." Some students may incorrectly identify the statement as normative because of the term "should."
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In 2008, net exports in the U.S. were
a. $1,831 billion. b. -$2,539 billion. c. -$900 billion. d. -$1,500 billion. e. -$708 billion.
A liability to a bank is
a. something that the bank owns. b. something that the bank owes. c. something a customer owes the bank. d. the value of bank buildings and hardware.
The term "unemployment" is best described as the total number of
A) adults who are looking for work but have not found a job. B) people not working. C) adults who work fewer hours than they wish to work. D) people who have been laid off and have stopped looking for work.
In the circular flow model, households:
a. Buy products and sell resources b. Sell products and buy resources c. Buy products and resources d. Sell products and resources