Question 1

"If the price of wine increases, the quantity purchased will increase." Is this a positive or a normative economic statement? Explain your answer.

Accepted Answer

The answer of "If the price of wine increases, the...

Question 2

"The president of the world's biggest polluter (the United States) needs to do more than propose well-intentioned but insufficient measures that amount to using a squirt gun to quell a raging fire." Is this a positive or a normative economic statement? Explain your answer.

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Question 3

When economists disagree, it is often over what type of issues?

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Question 4

Why would economists disagree over positive analysis?

Accepted Answer

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Question 5

Why are graphs such an important tool in economics?

Accepted Answer

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Question 6

"Government should do all it can to slow the process of global warming." Is this a positive or normative statement? Explain your answer.

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Question 7

Darla is surprised to find that the quality of in-flight service remains much the same despite a steep hike in air-fares recently.What could be wrong in her assumption that a higher price naturally translates into better quality?

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Question 8

How do we find the slope of a nonlinear curve?

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Question 9

Identify the error in judgment in each of the following statements:
 "If you leave a concert durng the encore, you wril avaid traffic and get home more rapidy, therefore everyone should leave during the encore."
II. "Whenever I wear my lucky baseball cap to an exam, I receive an "A." My baseball cap Must induce the teacher to give me goud grades."

Accepted Answer

The answer of Identify the error in judgment in each...

Question 10

Indicate whether each of the following is a positive or normative economic statement:
 The impositun af a price ceiling below equulibrium price wril lead to a shortage of housing
II. The local government should contol the rate of increase in rents so that low-income refidents are not forced to move From the area

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Question 11

Why is prediction in social sciences like economics more difficult than in physical sciences?

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Question 12

How do we measure the slope of a linear curve?

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Quiz 2: The Economic Way of Thinking