Question
updated 3 years ago
Category:
Economics
Analyze the positive versus normative arguments in the following case. What statements of positive economics are used to support requiring air bags? What normative reasoning is used?
Editor June 29, 2021
Here is a tip: A positive statement refers to verifiable statements, which can be termed true or false, whereas, normative statements are arguments like opinions or judgements, which cannot be (View full solution)
updated 3 years ago
Category:
Economics
Suppose Congress cuts spending for the military, and then unemployment rises in the U.S. defense industry. Is there causation in this situation, or are we observing an association between events?
Editor June 29, 2021
Explanation When the congress cuts the spending for the military, and it is followed by a rise in unemployment in country A's defence industry, then the two events can be (View full solution)
updated 3 years ago
Category:
Economics
Explain the importance of the ceteris paribus assumption for an economic model.
Editor June 29, 2021
Here is a tip: Ceteris paribus is a latin term which means "all other things remaining constant", when a particular variable is changing. Explanation In real life, corresponding to a (View full solution)
updated 3 years ago
Category:
Economics
1. Explain why it is important for an economic model to be an abstraction from the real world.
Editor June 29, 2021
Explanation While framing an economic model showing the relationship between demand and price of a particular good, in the real world it is observed that there are several other factors (View full solution)
updated 3 years ago
Category:
Economics
Which of the following are microeconomic issues? Which are macroeconomic issues? a. How will an increase in the price of Coca-Cola affect the quantity of Pepsi Cola sold? Which of the following are microeconomic issues? Which are macroeconomic issues? b. What will cause the nation's inflation rate t...
Editor June 29, 2021
Part D Here is the full solution including the answer and explanation. Explanation "Macroeconomic issue" is correct "Microeconomic issue" is incorrect Whether a large federal budget deficit reduces the rate (View full solution)