Which statement is normative? To become more economically independent, we should reduce our dependence on foreign oil. International trade leads to consumption outside a country's production possibility frontier. Increased spending on health care will lead to a healthier population. Higher expenditures on education will reduce unemployment.
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It is a statement about what ought to be, rather than what is. Show more…
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Identify whether each of the following statements are positive or normative. positive statement normative statement Answer Bank The unemployment rate in 2009 was higher than it was in 2018. The unemployment rate in 2009 was lower than it was in 2018. Economics courses ought to increase the amount of positive content they cover. If a company pays closer attention to its opportunity costs, this should result in higher profits. The price of oil should be increased because burning it has a negative impact on the environment. It is right for the government to continue to financially support third world countries through foreign aid programs.
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There are trade-offs associated with international trade. From the list below, classify statements that are consistent with mainstream economists' views on international trade as "True" and statements that are inconsistent as "False". International trade leads to lower prices and increased variety for consumers in the importing nation. International trade is unwise during a recession when unemployment is high. International trade improves the well-being of everyone. Trade between two countries will make one country better off and the other worse off.
The United States is the world’s largest importer, yet we read this week that a nation must produce large quantities of goods and services to enjoy a high standard of living. How do you reconcile these two factors? How would a transition from consumption to investment alter our economic growth? What groups would be the winners and losers if this change occurred and why?
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