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 freeWhat assumptions about the economy must be true for the invisible hand to work? To what extent are those assumptions valid in the real world?
Use this information to answer the following 4 questions: Marie has a weekly budget of \(\$ 24,\) which she likes to spend on magazines and pies. What is Marie's opportunity cost of purchasing a pie?
Use this information to answer the following 4 questions: Marie has a weekly budget of \(\$ 24,\) which she likes to spend on magazines and pies. If the price of a pie is \(\$ 12,\) what is the maximum number of pies she could buy in a week?
Individuals may not act in the rational, calculating way described by the economic model of decision making, measuring utility and costs at the margin, but can you make a case that they behave approximately that way?
Could a nation be producing in a way that is allocatively efficient, but productively inefficient?
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