Give an example of a positive economic statement and a normative economic statement
What will be an ideal response?
Student responses will vary. What is important is that the positive statement is objective and attempts to explain "what is". The normative statement should include some value judgment or "what should be".
Economics
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For a firm that can effectively price discriminate, who will be charged a lower price?
A) buyers that are members of the smallest market segment B) customers who have an elastic demand for the product C) buyers that are members of the largest market segment D) customers who have an inelastic demand for the product
Economics
Real business cycle theory was introduced by
A) Milton Friedman and Robert Lucas. B) Milton Friedman and Anna Schwartz. C) Thomas Cooley and Gary Hansen. D) Finn Kydland and Edward Prescott.
Economics