Describe the difference between positive and normative economics. Cite an example of each
Positive economics deals with "what is." Normative economics is concerned with "what should be." A positive economist would look at the impact of an increase in minimum wage on the growth of the economy, while a normative economist would focus on whether or not the wage hike should occur and how it might affect the working poor.
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Of the following cancer patients, who is speculating?
A) The one who follows their doctor's advice and elects chemotherapy B) The one who goes against their doctor's advice and rejects chemotherapy C) The one who gets a second opinion, but not a third opinion D) All of the above. E) None of the above.
How do taxes distort the incentives of buyers and sellers in a market?
If you suddenly have the misfortune of screening positive for lung cancer, then your consumption function will most likely
A. shift upward. B. shift downward. C. not shift, your disposable income does not change. D. not shift, but force you to increase your expenditures along the consumption function.
Ihaveathousandfriends Social Networking firm had a remarkably profitable year. As a result, its employees expect to receive bonus checks. Which of the following insights into human behavior do the employees exhibit?
a. People are overconfident. b. People care about fairness. c. People are reluctant to change their minds. d. People are inconsistent over time.