How do the two kinds of analysis differ

Reference no: EM13902342

Which of the following two statements involves posi- tive economic analysis and which normative? How do the two kinds of analysis differ?

a. Gasoline rationing (allocating to each individual a maximum amount of gasoline that can be pur- chased each year) is poor social policy because it interferes with the workings of the competitive market system.

b. Gasoline rationing is a policy under which more people are made worse off than are made better off.

Reference no: EM13902342

Questions Cloud

Are the ethical issues of partnering with chinese military : You are the CEO of a Canadian-Chinese joint venture that operates in China. Your Chinese partner is the People’s Liberation Army (PLA). The PLA has built a sprawling network of businesses that do everything from raise pigs to run airlines and hospita..

What happened to the real price of tele- phone service : The price of long-distance telephone service fell from 40 cents per minute in 1996 to 22 cents per minute in 1999, a 45-percent (18 cents/40 cents) decrease. The Consumer Price Index increased by 10 percent over this period. What happened to the r..

What joie de vivre philosophy on advertising for its hotels : How did Chip Conley and Joie de Vivre Hospitality demonstrate great strategic flexibility during the dot-com crash and post-9/11 industry recession? What is Joie de Vivre's philosophy on advertising for its hotels? How does this support the firm's ..

Which price alternative will maximize total revenue : The relationship d = 8000 40p describes what happens to demand (d) as price (p) varies. What is the maximum price that this market will bear? Explain. Model the expression (equation) for total revenue. Which price alternative will maximize total reve..

How do the two kinds of analysis differ : Which of the following two statements involves positive economic analysis and which normative? How do the two kinds of analysis differ?

Why residual income value estimates will not be distorted : Explain why residual income value estimates will not be distorted by aggressive accounting. How does the residual income valuation model correct for the effects of aggressive accounting and over-stated book values of equity?

Explain why a theory that cannot be evaluated empirically : It is often said that a good theory is one that can be refuted by an empirical, data-oriented study. Explain why a theory that cannot be evaluated empirically is not a good theory.

What would you need to know to participate in the design : As a manager or user of information systems, what would you need to know to participate in the design and use of a DSS or an ESS? Why?

How does the residual income valuation model correct : How does the residual income valuation model correct for the effects of conservative accounting and understated book values of equity?

User Account

All Pages