B) Consumers bought fewer cars when the relative price of cars increased. A. Which of the following is a positive economic statement? asked Mar 8, 2020 in Economics by connorgarrity. C)a normative statement. However, 4 talks about a microeconomic situation (the impact of one firm's advertising on another firm's sales) and 2 talks about macroeconomics (money supply, unemployment). In the following, I summarize the characteristics of the normative statement: Do you think that you have what it takes to identify which economic study is being described by the questions below? here you will find the the Baisc to Advance and most Important Economics Mcqs for your test preparation. Imagine we are looking at scenarios in which the government reduced income taxes by 50%: – A Normative Economic Statement may include the following words: “The government should reduce income tax by 50%. Macroeconomics is the study of how the prices of individual goods are determined. There is another category of assertions, however, for which investigation can never resolve differences. C. normative but incorrect. (C) is positive because it is testable. Macroeconomics is the study of individual economic units. 14)The statement "Unemployment should be kept at or below a level of 6 percent" is A)a positive statement. 0 votes. 🎁 Send Gift Now 18) When a U.S. A. C) The budget deficit has been rising in recent years. 1.99 See Answer Add To cart Question: Which of the following is a positive, Which of the following is a positive, rather than a normative, statement? C) A monopolist is a price maker. Not any economist can give his opinion to come out from a situation, so statements without opinion are known as positive economics. They are subjective statements. A) a normative statement. E) b and c Macroeconomics; Which of the following is a positive, Search. Here are some examples of normative statements in economics: Normative statements are opinions. A high rate of economic growth creates jobs. Economics Mcqs for test Preparation from Basic to Advance. Higher taxes lead to less desire to work C. The Pakistan’s economy is growing fast relative to other SAARC members Which of the following is an example of a positive statement? (b) Prices rise when the government prints too much money. b. A) Rising global demand for diesel and heating oil has led to increases in the price of crude oil. For example, globalization inflicts economic harm to a country is an opinion. (A) A decrease in price leads to an increase in quantity demanded. B)value free and testable. Such a judgment is the opinion of the speaker; no one can “prove” that the statement is or is not correct. Which of the following is the best example of a normative economic statement? Which one of the following statements about the gate-control theory is true? B) With falling home prices and rising mortgage interest rates, the amount of foreclosures has increased. B)an assumption. Numbers 1 and 3 are normative statements because they describe opinions about what should happen, and 2 and 4 are positive because they describe what actually happened. (a) If welfare payments increase, the world will be a better place. C)the study of scarcity and choice. To put it simply, positive economics is called the What is the primary difference between normative and positive economics? D. normative and correct. Which of the following represents a normative statement? Econ 201 Quiz 1 B Which of the following statements is false? It is normative because it is based on your subjective opinion. Textbook solution for Brief Principles of Macroeconomics (MindTap Course… 8th Edition N. Gregory Mankiw Chapter 2 Problem 6CQQ. Which of the following is an example of a normative statement? B. Positive Statement. B) Increase in competition in the car manufacturing industry will result in a price reduction for cars. Positive /normative economics Concept: AP Macroeconomics Practice Exam QUestions . Each of the studies has a primary focus that distinguishes it from the others. Pay for 5 months, gift an ENTIRE YEAR to someone special! It would help millions of people by increasing their disposable incomes.” We have step-by-step … U nderstanding how to recognize a normative statement is a very important skill to have when you are trying to pass your economics class. "Macroeconomics is the part of economics concerned with individual units such as a person, a household, a firm, or an industry." A normative statement carries judgment. Macroeconomics. Example of normative economics. B. positive and correct. Macroeconomics for Today (9th Edition) Edit edition. A. (D) is not very interesting, because all normative issues are of little importance. Macroeconomics for Today (10th Edition) Edit edition. B. Normative economics is more firmly rooted in scientific tradition. These refer to what ought to be. Problem 16SQ from Chapter 1: Which of the following is a statement of normative economics... Get solutions Economists tend to stay away from normative statements. Answer: TRUE Diff: 1 Page Ref: 14/14 Topic: Normative and Positive Analysis *: Recurring Law X will reduce national income. 15) D)the greatest good for all. tips@siliconsinai.com. Normative economics is a perspective on economics that reflects normative, or ideologically prescriptive judgments toward economic development, investment projects, … Let’s take your answer for a test drive using this quiz. D) Federal government spending ought to be curtailed. Normative statements usually present an opinion-based analysis in terms of what is considered desirable. a. answered Mar 8, 2020 by lalalala . This statement is an example of a positive economic statement. Positive economics makes value judgments inappropriate to scientific research. This statement is: A. positive but incorrect. ... macroeconomics; 0 Answer. Best answer. C. Intro to Psychiology 1. The rate of unemployment is 9%. More spending by the government reduces poverty B. Home; About Us; Services; Reviews; Contact Us; Select Page 🎁 Give the gift of Numerade. A normative statement expresses a judgment about whether a situation is desirable or undesirable, which can carry value judgements. Application of Economics Application of Economics Economics Mcqs. Senator tells a campaign crowd that “High inflation rates are a much more serious economic problem than high unemployment rates,” it is an example of . home / study / business / business statistics / business statistics solutions manuals / Macroeconomics for Today / 9th edition / chapter 1 / problem 16SQ. Difference between positive economics and normative economics is one thing that confuses many and this article intends to clarify the two concepts to make an easier understanding for everyone. Use of positive statement A normative statement is one that makes a value judgment. When values or opinions come into the analysis, then it is in the realm of normative economics. Generally, economists try to avoid making too many normative statements because they view them as closer to being in the realm of political science and are typically unable to be found to be true or false using traditional hypothesis testing. A) The unemployment rate for women has been two times lower than the overall rate. D) Stronger regulation should be applied to polluting companies. positive statement. (B) is normative, since it can be answered by simply looking at the facts. D)a prediction. For example, you stated that Indonesia’s economic growth should increase to 6%. Normative Analysis 10) "An increase in the price of gasoline will increase the demand for hybrid vehicles." (c) Inflation is more harmful to the economy than unemployment. Normative statements are subjective statements – i.e. 37. There are different things that we get to study when we take up economics as a discipline. Since they are opinions, they cannot be proven or disproven. they carry value judgments.For example: Pollution is the most serious economic problem; Unemployment is more harmful than inflation; The congestion charge for drivers of petrol-guzzling cars should increase to £25; The government should increase the minimum wage to £7 per hour to reduce poverty. 14) 15)The term ceteris paribus means A)all other things remaining equal. A) We should raise the minimum wage in order to provide a decent wage for more people. 6) Which of the following is a normative economic statement? What is the difference between a positive and a normative statement?