Microeconomics (9th Edition) (Pearson Series in Economics)
9th Edition
ISBN: 9780134184241
Author: Robert Pindyck, Daniel Rubinfeld
Publisher: PEARSON
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Question
Chapter 1, Problem 2RQ
(a)
To determine
Identify the positive and normative economic analyses.
(b)
To determine
Identify the positive and normative economic analyses.
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Students have asked these similar questions
Immediately after an ice storm brought down power lines throughout the region, hardware stores were sold out of batteries and flashlights. However, within a couple of days, special deliveries brought in extra batteries and flashlights, and everyone who wanted to buy a flashlight or batteries was able to do so.
Which of the following principles of economic interaction best describes this scenario?
1. When markets do not achieve efficiency, government intervention can improve overall welfare.
2. Markets allocate goods effectively.
3. All costs are opportunity costs.
4. There are gains from trade.
Suppose that one summer the weather is very hot. How does this event affect the market for ice cream? And How a decrease in supply of ice cream affects the equilibrium price and quantity? Draw the graph according to the situations above. Which of the following statements are examples of positive economic analysis? Which are examples of normative analysis?a. The inheritance tax should be repealed because it is unfair.b. Allowing Chile to join NAFTA would cause wine prices in the United States to drop.c. The first priorities of the new regime in the Democratic Republic of Congo (DRC, formerly Zaire) should be to rebuild schools and highways and to provide basic health care.
Which of the following best demonstrates the influence of economic factors on consumer decision-making?
a.
A consumer buys a Lexus after her neighbors and garden club pals each buy one.
b.
A married couple with three young children purchase a minivan.
c.
A blue collar worker holds off on buying a new truck, pending potential layoffs at work.
d.
A young professional buys a utility vehicle for off-road exploring.
Chapter 1 Solutions
Microeconomics (9th Edition) (Pearson Series in Economics)
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Similar questions
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- Question 2 Which one of the following statements is positive (as opposed to normative)? O Jimmy prefers rock music to classical music. Society would be better off if the level of air pollution were reduced. Vicki should spend more time studying physics. Poverty should be defined according to one's ability to meet a basic living standard. Question 3 The difference between positive and normative economics is best summarized as saying that positive economics is descriptive, while normative economics is prescriptive. positive economics is pessimistic, while normative economics is optimistic. positive economics is objective, while normative economics is biased. O positive economics is biased, while normative economics is objective.arrow_forwardExplain the difference between positive and normative economics with example.arrow_forwardMaria is training for a triathlon, a timed race that combines swimming, biking, and running. Consider the following sentence: In order to swim for an hour, Maria must take time away from work, where she earns $12 per hour. This is in addition to paying a $5 entrance fee for the pool. Which basic principle of individual choice do these statements best illustrate? a. The cost of something is what you give up to get it. b. Trade can make everyone better off. c. Markets are usually a good way to organize economic activity. d. People usually exploit opportunities to make themselves better off.arrow_forward
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