ViewZoom Insert Table Chart Text hape Mecia Comment Format Document ECO 2023.003

Question

ViewZoom Insert Table Chart Text hape Mecia Comment Format Document ECO 2023.003 Homework1 Economics HW 1 Text Body Update Briefly explain which of the following statements represent positive analysis and which represent normative analysis a. A 50-cent-per-pack tax on cigarettes will lead to a 12 Style Layout More Font percent reduction in smoking by teena b. The federal government should spend more on AIDS research c. Rising wheat prices will increase bread prices d. The price of coffee at Starbuck is too high gers Trebuchet MS 16 pt Character StylesNone Alignment spacing Bullets & Lists Lettered" 59 words

Explanation / Answer

a). Answer :- Positive analysis.

b). Answer :- Normative analysis.

c). Answer :- Positive analysis.

d). Answer :- Normative analysis.

Explanation :- Positive analysis refers to those statements in economics which are verifiable. Normative analysis refers to those statements which involve value judgement and are therefore not verifiable. The statements mentioned in options a) and c) are verifiable, accordingly, represent positive analysis whereas the statements mentioned in options b) and d) involve the value judgements & are thus not verifiable at all, accordingly, represent the normative analysis in economics.

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