What is the difference between positive and normative statements?
What will be an ideal response?
Positive statements tell what is and normative statements tell what ought to be. Positive statements can be tested to determine if they are correct or not, while normative statements use value judgments and so cannot be tested. For example, two economists might agree on the positive assertion that if the government spent its funds purchasing pharmaceutical drugs for poor older Americans rather than poor children, then poor older Americans would use more drugs and poor children would use fewer. But they might disagree on the normative conclusion of whether the government should pursue this policy. One economist might argue "It is not fair to have senior citizens suffer because they cannot afford medicine" and the other economist might argue "It is not fair to have children suffer because their parents cannot afford medicine."
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What does it mean when a good is excludable?
a) One person's use of the good diminishes another person's ability to use it. b) Everyone will be excluded from obtaining the good. c) People can be prevented from using the good. d) No more than one person can use the good at a time.
The real bills doctrine was the guiding principle for the conduct of monetary policy during the
A) 1910s. B) 1940s. C) 1950s. D) 1960s.