Provide two microeconomic statements and two macroeconomic statements. Classify your statements as positive or normative, and explain your classifications
What will be an ideal response?
Microeconomic statements are: Fewer deep water oil wells should be drilled in the Gulf of Mexico. If less oil is produced, the price of oil will rise. The first statement is normative because it relies on what the person thinks "should" be done. The second statement is positive because it is possible to test the effect of less oil being produced.
Macroeconomic statements are: The currently unemployment rate is too high. The current unemployment rate is higher for blacks than for whites. The first statement is normative because it depends on what is deemed "too high." The second statement is positive because it can be checked to determine its validity.
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Which of the following statements does NOT describe a function of money?
A) a store of value B) a hedge against inflation C) a standard of deferred payment D) a unit of accounting
Efficient production occurs if a firm
A) cannot produce its current level of output with fewer inputs. B) given the quantity of inputs, cannot produce more output. C) maximizes profit. D) All of the above.