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Positive and normative economic analysis
1. 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a. The inheritance tax should be repealed because it is unfair.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. In 2005, France and the Netherlands rejected the new European constitution. As a result, the European economy is likely to be less efficient and will grow more slowly in the years ahead.
c. Allowing Chile to join NAFTA would cause wine prices in the United States to drop.
d. The first priorities of the new regime in the Democratic Republic of Congo should be to rebuild schools and highways and to provide basic health care.
Optimal consumption. The following Table describes the demand for tickets to the opera, during the two=-week season.
A woman who anticipates comprise a large family takes a job with a firm that offers exceptional child care benefits.
Illustrate what are possible causes of a movement up or down along the demand curve. What are possible causes of a movement up or down along the supply curve.
rate of technological change also innovation has increased substantially. Discuss how these changes are likely to affect your firm's optimal bundling of tasks into jobs and subunits.
Explain whether every of the following transactions involves spot exchange, contract, or vertical integration.
Elucidate what could Coca Cola do to mitigate any undesirable effects of business cycles.
Suppose that natural real GDP is constant. For every 1 percent increase in the rate of inflation above its expected level, firms are willing to increase real GDP by 2 percent.
Explain how will unskilled workers adapt to a workplace requiring more skilled workers and fewer unskilled workers.
Assume that all states adopt a serious no-fault rule to cover automobile accidents, so that it becomes impossible to sue for damages after an accident.
Illustrate what has occurred to change the demand for, or the supply of, the good or service, and market prices of those products or services.
Illustrate what is the relationship between the variable that you selected and the economy. What trends do you see in the data sets.
Presently most British imports come from other European countries. How does this fit in with the changing types of goods that make up world trade.
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