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 freeWhat is productive efficiency? Allocative efficiency?
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?
Would an op-ed piece in a newspaper urging the adoption of a particular economic policy be a positive or normative statement?
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?
What are diminishing marginal returns?
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