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 freeCould a nation be producing in a way that is allocatively efficient, but productively inefficient?
Use this information to answer the following 4 questions: Marie has a weekly budget of \(24\)dollars, which she likes to spend on magazines and pies. If the price of a magazine is \(4\)dollars each, what is the maximum number of magazines she could buy in a week?
What are the similarities between a consumer's budget constraint and society's production possibilities frontier, not just graphically but analytically?
What assumptions about the economy must be true for the invisible hand to work? To what extent are those assumptions valid in the real world?
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?
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