Chapter 2: Problem 16
What is the difference between a positive and a normative statement?
Chapter 2: Problem 16
What is the difference between a positive and a normative statement?
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Get started for freeDuring the Second World War, Germany's factories were decimated. It also suffered many human casualties, both soldiers and civilians. How did the war affect Germany's production possibilities curve?
It is clear that productive inefficiency is a waste since resources are used in a way that produces less goods and services than a nation is capable of. Why is allocative inefficiency also wasteful?
Would a research study on the effects of soft drink consumption on children's cognitive development be a positive or normative statement?
Explain why scarcity leads to tradeoffs.
Explain why individuals make choices that are directly on the budget constraint, rather than inside the budget constraint or outside it.
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