ECON Lesson%204[1]

# ECON Lesson%204[1] - b Normative—This is an opinion that...

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Ashlie Michelle Ferguson Lesson 4 Enrollment # 642885 ECON 2010 1. This is only possible if the number of people employed in the population rises Numerical Example: Population: 4 people Number Employed: 2 people Output: 20 units Average Labor Productivity = Output / # Employed = 20 / 2 = 10 Average Living Standard = Output / Population = 20 / 4 = 5 If productivity falls to 6, but 3 people are working: Output = 6 x 3 = 18 units Average Living Standard = Output / Population = 18 / 3 = 6 2. a. Positive—This is a prediction of the effect of raising interest rates, not a value judgment on whether or not it should be done.
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Unformatted text preview: b. Normative—This is an opinion that interest rates “should” be enacted. c. Positive—This is a prediction on what will happen in the future—no opinion has been made. d. Positive—This is also a prediction of the effect of a policy. The statement is made on fact and not opinion. e. Normative—This statement is about the desirability of a policy, and how it should be enacted. Statement is based on opinion. 3. C 4. D 5. C 6. D 7. E 8. A 9. A 10. C 11. B 12. C 13. D 14. D 15. C 16. A 17. B...
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## This note was uploaded on 05/11/2010 for the course ECON 2010 taught by Professor Roussel during the Spring '08 term at LSU.

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