Which of the Following Is a Positive Microeconomics Statement

Remember me on this computer. Decide whether each of the following statements is true or false and explain why.


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. B Positive c Constant d Either a or b Ans a Any statement about the demand for a good is considered complete only when the following isare mentioned in it. We would like to show you a description here but the site wont allow us. Principles of Microeconomics 2e covers the scope and sequence of most introductory microeconomics courses.

Refer to the diagram. Economy has begun. Second statement a makes the normative statement ie a value judgment that gasoline rationing is a poor social policy Thus statement a makes a normative comment based on a conclusion derived from positive economic analysis of the policy.

Let us suppose the utility function is of the following form. We have already noted that an indifference curve is just the set of all x 1 and x 2 such that u x 1 x 2 for some constant k. Classify each of the following statements as positive or normative.

Positive but for an inferior good the income elasticity of demand will be negative. There is renewed concern over inflation as the overall price level in the US. Microeconomics by Nicholson and Snyder.

Positive because it is a statement of fact that can be tested. A statement of what should be which is normally thought of as a normative statement. The outcome is a balanced approach to the theory and application of economics concepts.

Because any society should stress economic growth as its major goal point D is superior to point C. Ux 1 x 2 x 1 x 2. Fast food chains like McDonalds Burger King and Wendys operate all over the United States.

Log in with Facebook Log in with Google. In microeconomics the principle of income elasticity of demand which illustrates the relationship between demand and income is important to understand the field as a whole. Close Log In.

Click here to sign up. The text includes many current examples which are handled in a politically equitable way. Enter the email address you signed up with and well email you a reset link.

A point inside the production possibilities curve is superior to a point on the curve because the former requires less work effort. Microeconomics because McDonalds is an individual decision maker in a specific market. If we solve for x 2 as a function of x 1 the equation of the indifference.

A positive statement is a statement of what is vs. A Price of the good b Quantity of the good c Period of time d All of the above. Which of the following is a positive statement.

Statement of Research Interest Maoliang Ye PhD. X 2 ux 1 which is the formula for hyperbola. Determine whether the following statement is a topic of study in microeconomics or macroeconomics.

This statement is false. Normative because it is a statement of opinion that cannot be tested. If the income elasticity of demand is greater than 1 then the good is a luxury.

A good rule of thumb is to ask yourself if the statement can be proven true or false tested in a relatively easy way and understood by most. Harvard University Assistant Professor in Economics Renmin University of China November 2014 My research interests fall into the fields of applied microeconomics especially experimental behavioural economics public economics labor economics development economics with an. If the income elasticity of demand is positive but less than 1 then the good is a necessity.

Ans d Good X and good Y are complementary goods while good X and good Z are substitute goods. Therefore the market for fast food is a national market. The slope of production possibility curve is marginal opportunity cost which refers to the additional sacrifice that a firm makes when they shift resources and technology from production of one commodity to the other.


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