“The city of Seattle is the most exciting city in the world.” Is the statement positive or normative?
“Seattle has the highest cost of living in the world.” Is the statement positive or normative?
The city of Seattle is the most exciting city in the world.
Answer: this statement is positive.
Seattle has the highest cost of living in the world.
Answer: this statement is positive.
Explanation: positive economic tries to explain what scenario is. It is based on facts and it can't be aapproved or disapproved. On the other hand, normative economics tries to explain what a policy or scenario ought to be. It is based on value judgment.
“The city of Seattle is the most exciting city in the world.” Is the statement positive...
Philosophers draw a distinction between positive statements, which describe the world as it is, and s, which describe how the world should be. O A. normative statement O B. budget constraint C. Trade-off O D. opportunity cost
Indicate whether each of the following news items is a positive or a normative statement. 1. A ban on smoking will lower the healthcare budget 2. Nuclear energy is cleaner than coal and oil based energy 3. More police on inner-city streets will lower the crime rate. 4. Netflix original programming is better than network TV shows. Statement 1 is a statement, and statement 2 is a statement O A. normative, normative O B. positive, positive O C. normative, positive...
Find a normative statement that could be mistaken as a positive statement by researching news sites, economic journals, political blogs, and so on. Write out the statement and analyze it as follows: Is the statement supported by facts? Write a true positive statement that would support the normative statement. Now write a positive statement that would not support the normative statement. Evaluate your two positive statements and determine whether you agree or disagree with the normative statement above. Explain your...
Modigliani and Miller's world of no taxes. Air Seattle is looking to change its capital structure from an all-equity firm to a levered firm with 20% debt and 80% equity. Air Seattle is a not-for-profit company and therefore pays no taxes. If the required rate on the assets (R2) of Air Seattle is 25%, what is the current required cost of equity (when Air Seattle is an all-equity firm)? What is the new required cost of equity if the cost...
Which of the following is not an example of a positive, as opposed to normative, statement? a. Higher gasoline prices will reduce gasoline consumption. b. Equality is more important than efficiency. c. Trade restrictions lower our standard of living. d. If a nation wants to avoid inflation, it will restrict the growth rate of the quantity of money.
5. What is the difference between a positive economic statement and a normative economic statement? Determine whether each of the following is primarily a positive economic statement or normative economic statement: A) The current unemployment rate is below 4% in 2018 B) The inflation rate in the United States is too low C) The Government should increase the minimum wage D) U.S. trade restrictions cost consumers $125 billion annually
Select a current world event news article. List normative statements in the article. List positive statements in the article. Analyze the validity of the listed positive statements. Explain your opinion on the normative statements.
1. is this statement normative or positive? “an income subsidy will decrease the number of hours people choose to work.” 2. romo’s income elasticity of demand for iced coffee is e=-3. if romo gets 3% cost of living adjustment, what happens to his demand for iced coffee 3. the demand function for cookies is Q =12-2p, for what price is elasticity equal to 1 4. will this firm shutdown? Q=5, price=$30, MC=$10, AVC=$25, AFC=$3
A major coffee supplier has warehouses in Seattle and San Jose. The coffee supplier receives orders from coffee retailers in Salt Lake City and Reno. The retailer in Salt Lake City needs 600 pounds of coffee, and the retailer in Reno needs 550 pounds of coffee. The Seattle warehouse has 1100 pounds available, and the warehouse in San Jose has 700 pounds available. The cost of shipping from Seattle to Salt Lake City is $2.50 per pound, from Seattle to...
A major coffee supplier has warehouses in Seattle and San Jose. The coffee supplier receives orders from coffee retailers in Salt Lake City and Reno. The retailer in Salt Lake City needs 500 pounds of coffee, and the retailer in Reno needs 450 pounds of coffee. The Seattle warehouse has 900 pounds available, and the warehouse in San Jose has 600 pounds available. The cost of shipping from Seattle to Salt Lake Cty is S2.50 per pound from Seattle to...