Chat with AI
Microeconomics 2nd Edition by Douglas Bernheim
Edition 2ISBN: 978-0071287616Microeconomics 2nd Edition by Douglas Bernheim
Edition 2ISBN: 978-0071287616 Exercise 2
Which of the following statements are positive and which are normative Why
a. The U.S. government should eliminate the estate tax.
b. The income tax causes people to work less.
c. Public education improves the well-being of the average citizen.
d. Exercise lowers the risk of heart disease.
e. Exercise is good for you.
f. Most people would choose pizza over tacos.
g. Most people are better off with pizza than with tacos.
a. The U.S. government should eliminate the estate tax.
b. The income tax causes people to work less.
c. Public education improves the well-being of the average citizen.
d. Exercise lowers the risk of heart disease.
e. Exercise is good for you.
f. Most people would choose pizza over tacos.
g. Most people are better off with pizza than with tacos.
Explanation
Verified
Verified
Positive statements concerns explaining economic concepts by focusing on cause and effect analysis and testing different theories whereas Normative statements are opinions and based on value-based judgment hence subjective in nature.
a)The US government should eliminate the estate tax is a normative statement as situations concern what "should" or "ought" to happen regarding the allocation of resources are part of normative economics.
b)The income tax causes people to work less is a positive statement as there is a cause and effect relationship that can be true or not. When income tax would increases income received by workers will reduce and they will spend more time on leisure than work hence people will work less.
c)Public education improves well being of the average citizen is a positive statement as it is a factual statement that can be proven by observing the per capita income of average citizen and education index.
d)Exercise lowers the risk of heart disease is a positive statement as there is a factual link between exercise and heart rate. It can be tested true or false by observing trends on the same.
e)Exercise is good for you is a normative statement as it is an opinion of one person on another without based on any proven evidence.
f)Most people would choose pizza over tacos is a normative statement as it is a value-based judgment and a general opinion without a causal relationship.
g)Most people are better off with pizza than tacos is a normative statement as there is no causal relationship defined between the two goods and the trend cannot be explained.
a)The US government should eliminate the estate tax is a normative statement as situations concern what "should" or "ought" to happen regarding the allocation of resources are part of normative economics.
b)The income tax causes people to work less is a positive statement as there is a cause and effect relationship that can be true or not. When income tax would increases income received by workers will reduce and they will spend more time on leisure than work hence people will work less.
c)Public education improves well being of the average citizen is a positive statement as it is a factual statement that can be proven by observing the per capita income of average citizen and education index.
d)Exercise lowers the risk of heart disease is a positive statement as there is a factual link between exercise and heart rate. It can be tested true or false by observing trends on the same.
e)Exercise is good for you is a normative statement as it is an opinion of one person on another without based on any proven evidence.
f)Most people would choose pizza over tacos is a normative statement as it is a value-based judgment and a general opinion without a causal relationship.
g)Most people are better off with pizza than tacos is a normative statement as there is no causal relationship defined between the two goods and the trend cannot be explained.
Microeconomics 2nd Edition by Douglas Bernheim
Why don’t you like this exercise?
Other Minimum 8 character and maximum 255 character
Character 255
