Chapter 2: Problem 16
What is the difference between a positive and a normative statement?
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Chapter 2: Problem 16
What is the difference between a positive and a normative statement?
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Is the economic model of decision-making intended as a literal description of how individuals, firms, and the governments actually make decisions?
Would a research study on the effects of soft drink consumption on children's cognitive development be a positive or normative statement?
Do economists have any particular expertise at making normative arguments? In other words, they have expertise at making positive statements (i.e., what will happen) about some economic policy, for example, but do they have special expertise to judge whether or not the policy should be undertaken?
What are diminishing marginal returns?
Would an op-ed piece in a newspaper urging the adoption of a particular economic policy be a positive or normative statement?
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