Chapter 2: Problem 16
What is the difference between a positive and a normative statement?
Chapter 2: Problem 16
What is the difference between a positive and a normative statement?
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Get started for freeUse this information to answer the following 4 questions: Marie has a weekly budget of \(24\)dollars, which she likes to spend on magazines and pies. If the price of a magazine is \(4\)dollars each, what is the maximum number of magazines she could buy in a week?
Why is a production possibilities frontier typically drawn as a curve, rather than a straight line?
It is clear that productive inefficiency is a waste since resources are used in a way that produces less goods and services than a nation is capable of. Why is allocative inefficiency also wasteful?
Suppose Alphonso's town raises the price of bus tickets from \(0.50\)dollars to \(1\)dollars and the price of burgers rises from \(2\)dollars to \(4\)dollars. Why is the opportunity cost of bus tickets unchanged? Suppose Alphonso's weekly spending money increases from \(10\)dollars to \(20\)dollars How is his budget constraint affected from all three changes? Explain.
Could a nation be producing in a way that is allocatively efficient, but productively inefficient?
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