Question

In Chapter 2 we learned about the important differences between positive and normative economic statements. Consider the following arguments in favor of and against airbags. Analyze the positive versus normative arguments. What statements of positive economics are used to support requiring air bags? What normative reasoning is used? Be sure to justify your identification of each type of statement. Technological advances continuously provide new high- tech options to save lives that add to the price of cars, such as cameras, radar, and airbags. Air bag advocates say air bags will save lives and the government should require them in all cars. Air bags add an estimated $600 to the cost of a car, compared to about $100 for a set of regular seat belts. Opponents argue that air bags are electronic devices subject to failure and have produced injuries and death. For example, air bags have killed both adults and children whose heads were within the inflation zone at the time of deployment. Opponents therefore believe the government should leave the decision of whether to spend an extra $600 or so for an air bag to the consumer. The role of the government should be limited to providing information on the risks of having versus not having air bags

Answer 1

Technological advances provide high tech options to save lives that add to price of cars, such as cameras, air bags . - Postive Statement.

Air Bags advocates say that airbags will save lives and government should require them in all cars - Normative Statement.

Air bags add an estimate of $600 to cost of car as compared to $100 for regular seat belts - Positive Statement

Opponents argue that air bags are electronic devices subject to failure and have produced injuries and death - Positive Statement

Opponents there fore argue that government should leave the decision to the consumers - Normative Statement

The role of the government should be limited to providing information on the risks of having versus not having air bags - Normative Statement.

Thus, positive economics statement to support the argument in favor of air bags is that air bags save lives and normative reasing is government should require them in all cars.