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 freeExplain why individuals make choices that are directly on the budget constraint, rather than inside the budget constraint or outside it.
Explain why scarcity leads to tradeoffs.
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?
Why is a production possibilities frontier typically drawn as a curve, rather than a straight line?
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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