a. Identify which of the four economic principles of individual choice applies to each statement. i. People in Europe drive smaller cars than in the United States because the price of gasoline is hi A government's economic policy has a great ...
An economic analysis estimates the negative impact on those who would have benefitted from the harvesting, and the positive impact on those who get value from the forest’s existence. If the benefits of protection exceed the costs, then there is a potential Pareto improvement in which the ...
The differences in the verdicts are not entirely because of the differences between logical schools but are also partly because of semantic differences, as the meaning of normative statement is far from unambiguous. That value judgments can be regarded as analytical propositions means that they can ...
For example, a positive theoretical statement could be "an increase in the price of gasoline will lead to a decrease in the quantity demanded of gasoline." This statement is a positive theoretical statement because it describes an economic phenomenon (the relationship between price and quantity dema...
A recent development is the idea of including economic and social aspects in sustainability evaluations. An ecological balance consists of the definition of its objectives, a resource balance, an impact balance and an evaluation. The definition of objectives includes determining the scope and goals of...
In economics scarcity has a different meaning from the normal usage. Scarcity means finite ie there is an end to supply whereas shortage implies a more temporary situation where more is demanded than supplied The 4 economic factors of production (land, labour, ...
If their disagreement is on normative grounds, they know that their disagreement lies outside the realm of economics, so economic theory and evidence will not bring them together. However, if their disagreement is on positive grounds, then further discussion, study, and testing may bring them ...
This is the rationale for why plant assets are not reported at liquidation value. (Do not use the historical cost principle.) Identify the accounting assumption principle or constraint that describes the situation above. 1. Economic enti...
An example of normative economics would be the statement: "We should cut taxes in half to increasedisposable incomelevels." By contrast, a positive or objective economic observation would be, "Based on past data, bigtax cutswould help many people, but government budget constraints make that opti...
An example of a normative economic statement is: "The government should provide basic healthcare to all citizens." As you can deduce from this statement, it is value-based, rooted in personal perspective, and satisfies the requirement of what "should" be. One of the most famous normative eco...