Chapter 2: Problem 6
Would an op-ed piece in a newspaper urging the adoption of a particular economic policy be a positive or normative statement?
Chapter 2: Problem 6
Would an op-ed piece in a newspaper urging the adoption of a particular economic policy be a positive or normative statement?
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Suppose Alphonso’s town raises the price of bus tickets from \(0.50 to \)1 and the price of burgers rises from \(2 to \)4. Why is the opportunity cost of bus tickets unchanged? Suppose Alphonso’s weekly spending money increases from \(10 to \)20. How is his budget constraint affected from all three changes? Explain.
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?
Could a nation be producing in a way that is allocatively efficient, but productively inefficient?
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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