Explain whether the statement "The government should increase tariffs on Japanese cars to protect the American car industry from competition," is a normative or positive statement
What will be an ideal response?
The statement is normative. The statement is a normative statement because it depends on a value judgment, namely that the government should protect the American car industry from competition.
Economics
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Firms that can choose what price they will charge for their product and can increase the number of units sold by reducing price are called
a. price searchers. b. price leaders. c. purely competitive. d. price takers.
Economics
If nominal wages and salaries are fixed as firms change product prices, the short-run aggregate supply curve (SRAS) is:
a. vertical. b. positively sloped. c. negatively sloped. d. horizontal.
Economics