Chapter 2: Problem 7
Would a research study on the effects of soft drink consumption on children's cognitive development be a positive or normative statement?
Chapter 2: Problem 7
Would a research study on the effects of soft drink consumption on children's cognitive development be a positive or 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?
Do economists have any particular expertise at making normative arguments? In other words, they have expertise at making positive statements (i.e., what will happen) about some economic policy, for example, but do they have special expertise to judge whether or not the policy should be undertaken?
Would an op-ed piece in a newspaper urging the adoption of a particular economic policy be a positive or normative statement?
Explain why scarcity leads to tradeoffs.
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