which of the following is an example of a positive economic statement course hero

What are positive statements in economics?

Jul 17, 2016 · Which of the following is a positive economic statement? A) The standard of living in the United States should be higher B) If the price of iPhones falls, a larger quantity of iPhones will be purchased C) The government should revamp the health care system D) The U.S. government should not have bailed out U.S. auto manufacturers Correct Answer(s): B Points …

What does a good economic model not rely on?

Mar 03, 2019 · ECO 2013 Exam Chapters 1-5 Which of the following is an example of a positive economic statement? a. The poor should pay lower taxes and the rich should pay higher taxes. b. The U.S. public should devote more resources to education. c. Soap operas should be taken off television. d. If you drop a ball from the top of a building, it will fall to the ground.

What are the three basic economic questions?

Which of the following is an example of a positive economic statement? In order to reduce the budget deficit, tax rates should be increased. In order to increase employment, the minimum wage should be decreased. If payroll taxes are raised, then the Social Security crisis will be resolved. If gas prices fall, consumers should purchase more gas.

What is the difference between positive economics and normative economics?

Which of the following is an example of a positive economic statement? A) The government should ideally work as a welfare state. B) An increase in income causes an increase in savings. ... "A 5% fall in the unemployment rate will lead to a 2% increase in the inflation rate" is an example of a positive economic statement. Normative economics, on ...

What is an example of a positive economic statement?

Positive Economics Here's an example of a positive economic statement: "Government-provided healthcare increases public expenditures." This statement is fact-based and has no value judgment attached to it. Its validity can be proven (or disproven) by studying healthcare spending where governments provide healthcare.

Which of the following is example of a positive statement?

Positive statements are based on empirical evidence. For examples, "An increase in taxation will result in less consumption" and "A fall in supply of petrol will lead to an increase in its price".

Which is an example of a positive statement quizlet?

An example of a positive economic statement is, "An increase in the price of a product causes consumers to purchase more of that product."

Which of the following statements is an example of positive as opposed to normative statement?

Which of the following is an example of a positive, as opposed to normative, statement? When the minimum wage is increased, unemployment is a predictable consequence.

What is a positive statement in economics quizlet?

Positive statements are statements about economics which can be proven true or false by evidence. Normative statements are statements which cannot by supported or refuted as they are value judgements, i.e. Opinions, about how economies and markets should work.

How is positive economics different from normative economics?

Positive Economics refers to a science which is based on data and facts. Normative economics is described as a science based on opinions, values, and judgment. Positive economics is descriptive, but normative economics is prescriptive. Positive economics explains cause and effect relationship between variables.

What do you mean by positive economics?

Positive economics is the branch of economics concerned with describing and explaining economic phenomena. It focuses on facts and behavioural relationships of cause and effect and includes the development and testing of economic theories.Mar 11, 2022

What is meant by a positive statement?

Positive statement – definition A positive statement is one that can be tested and verified and is not based on a value judgment.Jan 29, 2020

When an economist evaluates a positive statement?

When an economist evaluates a positive statement, he or she is primarily examining evidence.

What is positive and normative statement?

Positive statements are fact-based, but normative statements are based on opinions. In this video, learn about the distinction between positive statements and normative statements, and why economists emphasize positive analysis vs. normative analysis, as well as how to identify positive statements vs.

What are positive and normative statements in economics?

Positive economics is concerned with the development and testing of positive statements about the world that are objective and verifiable. Normative statements derive from an opinion or a point of view. Thus the words 'should', 'ought to' or 'it is better to' frequently occur.

What is macroeconomics in economics?

On the other hand, macroeconomics is the study of the economy as a whole. The scope of macroeconomics extends to the study of economy-wide phenomena, like the growth rate of an economy, the nation-wide unemployment rate, or the inflation rate. Robert and Janet are discussing unemployment and inflation in their country.

What is the best alternative use of a resource?

Opportunity cost is the best alternative use of a resource. Buying one rug costs $10, and each chair costs $5. So, one rug can be purchased with the same amount of money used to buy two chairs. Therefore, the opportunity cost of buying a rug is 2 chairs. Similarly, the opportunity cost of buying a chair is half a rug.

How much does Sam spend on guitar classes?

Therefore, the next best use of an hour that Sam spends on guitar classes is equal to the $9 he could have earned per hour by working at the fast-food outlet. Sam's opportunity cost of attending his guitar classes is $9 per hour.

What is positive economics?

Positive economics is analysis that generates objective descriptions or predictions about the world that can be verified with data. It is analysis that describes what people actually do. "A 5% fall in the unemployment rate will lead to a 2% increase in the inflation rate" is an example of a positive economic statement.

Why do some benefits have to be given up?

Therefore, in most cases, some benefits have to be given up in order to gain some other benefits. Budget constraints quantify the relevant trade-offs that an economic agent faces. Once trade-offs are quantified, rational decision making becomes easier allowing the individual to make an optimal decision.

Is Janet's statement normative?

Janet claims that inflation is a far bigger problem than unemployment and should be addressed with prime importance. Janet's statement is normative.

What does it mean when an economist says the price of oranges is higher?

The more ice cream you eat, the more weight you will gain, ceteris paribus. If an economist says "the higher the price of oranges, the fewer oranges individuals will buy, ceteris paribus," this means that. a. individuals don't like high-priced oranges. b.

What does it mean when an economist says "You don't find any $10 bills on the sidewalk"?

What an economist means by this statement is that people do not pass by net benefits. Whenever the marginal benefits of some activity exceed the marginal costs of that activity, net benefits result.

What are the consequences of scarcity?

The consequences of scarcity include: (1) the need to make choices, (2) the need for a rationing device, and (3) competition.

What helped push the unemployment rate down in the short run?

The increase in the nation's money supply helped push the nation's unemployment rate down in the short run. what is a normative macroeconomics question. normative statements typically present an opinion-based analysis in terms of what is thought to be desirable.

Why do people buy fewer oranges?

the higher the price of oranges, the fewer oranges individuals will buy, assuming that people have economic motives. as the price of oranges rises, individuals' preferences do not change, nor does anything else, but individuals buy fewer oranges in response to the higher price of oranges.

What is positive statement?

Positive statements are objective and fact based. They don't have to be correct, rather they are a hypothesis which can be tested and proved or disproved. ... In simple words, positive statements describe that how economy is (fact based) and normative describes hoe economy should be (opinions).

What is positive economics?

what is a positive economic statement. Positive statements are objective statements that can be tested, amended or rejected by referring to the available evidence. Positive economics deals with objective explanation and the testing and rejection of theories.

Why did John not use the economic way of thinking?

C. John did not use the economic way of thinking because his decision on how to allocate his time did not involve money. D. John's decision on how to allocate his time is consistent with the rationality assumption since the decision is intended to make him better.

Why do children not care for their parents in old age?

Children don't care for their parents in old age due to profit motives but as the result of tradition.

What test does John have?

John has an economics test tomorrow. He must study and has planned the rest of his day so that he can fit some study time in. He has decided to go to the gym and then study for several hours.