Question

Determine if the following items represent an example of positive economics or normative economics The richest 1% of Americans should pay more taxes than the rest of the 99%. Positive Economics O Normative Economics A decrease in the supply of coconut will increase the price of German chocolate cake, a good which requires coconut shavings as a key ingredient. O Normative Economics Positive Economics minimum wage, the higher the price of goods and services The higher the is likely to bo. Normative Economics O Positive Economics Social welfare spending in Sweden occupies too large a portion of the national budget. O Normative Economics

Answer 1

Normative Economics

The richest 1% of Americans should pay more taxes than the rest of the 99%.

Social welfare spending in Sweden occupies too large a portion of the national budget.

Positive Economics

A decrease in the supply of coconut will increase the price of German chocolate cake, a good which requires coconut shavings as a key ingredient.

The higher the minimum wage, the higher the price of goods and services is likely to be.