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Chapter 2: Problem 13

Economists who work for the government are often called on to make policy recommendations. Why do you think it is important for the public to be able to differentiate normative statements from positive statements in these recommendations?

Short Answer

Expert verified
Short Answer: The importance of differentiating between normative and positive statements in policy recommendations made by economists working for the government lies in promoting transparency, informed decision-making, avoiding biases and misconceptions, encouraging evidence-based policy-making, and facilitating public debate and discussion. Normative statements express opinions or values and make judgments, while positive statements are objective and based on facts and data. Understanding the difference between the two allows the public to better evaluate the merits and drawbacks of various policy recommendations.

Step by step solution

01

Define normative statements and positive statements

Normative statements are subjective statements that express opinions or values, and make judgments regarding what ought to be done or what is desirable. In contrast, positive statements are objective statements based on facts and data, and describe what is happening or what will happen without making any value judgments.
02

Explain the role of economists in government

Economists working for the government provide analysis, research, and policy recommendations on various economic issues such as fiscal policy, taxation, employment, and economic growth. Their work often influences the policy decisions made by the government, which can have a significant impact on the lives of the public.
03

Discuss the importance of distinguishing between normative and positive statements in policy recommendations

It is crucial for the public to be able to differentiate between normative and positive statements in policy recommendations for the following reasons: 1. Transparency and informed decision-making: Understanding the difference between normative and positive statements allows for more transparency in the policy-making process and helps the public make more informed decisions about the policies they support. 2. Avoiding biases and misconceptions: When the public can differentiate between normative and positive statements, they can better identify and discard potential biases or misconceptions embedded in policy recommendations. 3. Encouraging evidence-based policy-making: Distinguishing between normative and positive statements can encourage the government and policymakers to base their recommendations on solid evidence and data instead of personal beliefs, values, or political motivations. 4. Facilitating public debate and discussion: Clear understanding of the different types of statements provides a solid foundation for healthy public debate and discussion on the merits and drawbacks of various policy recommendations.
04

Provide a conclusion

In conclusion, it is essential for the public to differentiate between normative and positive statements in policy recommendations made by economists working for the government. This differentiation promotes transparency, informed decision-making, evidence-based policy-making, and facilitates public debate and discussion on important economic issues.

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Most popular questions from this chapter

One July, the United States sold aircraft worth \(\$ 1\) billion to China and bought aircraft worth only \(\$ 19,000\) from China. During the same month, however, the United States bought \(\$ 83\) million worth of men's trousers, slacks, and jeans from China but sold only \(\$ 8,000\) worth of trousers, slacks, and jeans to China. Using what you have learned about how trade is determined by comparative advantage, answer the following questions. a. Which country has the comparative advantage in aircraft production? In production of trousers, slacks, and jeans? b. Can you determine which country has the absolute advantage in aircraft production? In production of trousers, slacks, and jeans?

The inhabitants of the fictional economy of Atlantis use money in the form of cowry shells. Draw a circular-flow diagram showing households and firms. Firms produce potatoes and fish, and households buy potatoes and fish. Households also provide the land and labor to firms. Identify where in the flows of cowry shells or physical things (goods and services, or resources) each of the following impacts would occur. Describe how this impact spreads around the circle. a. A devastating hurricane floods many of the potato fields. b. A very productive fishing season yields a very large number of fish caught. c. The inhabitants of Atlantis discover Shakira and spend several days a month at dancing festivals.

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You are in charge of allocating residents to your dormitory's baseball and basketball teams. You are down to the last four people, two of whom must be allocated to baseball and two to basketball. The accompanying table gives each person's batting average and freethrow average. $$ \begin{array}{l|c|c} \text { Name } & \text { Batting average } & \text { Free-throw average } \\\ \text { Kelley } & 70 \% & 60 \% \\\ \text { Jackie } & 50 \% & 50 \% \\\ \text { Curt } & 10 \% & 30 \% \\\ \text { Gerry } & 80 \% & 70 \% \end{array} $$ a. Explain how you would use the concept of comparative advantage to allocate the players. Begin by establishing each player's opportunity cost of free throws in terms of batting average. b. Why is it likely that the other basketball players will be unhappy about this arrangement but the other baseball players will be satisfied? Nonetheless, why would an economist say that this is an efficient way to allocate players for your dormitory's sports teams?

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