MicroChapter2 - Rikki Norton Microeconomics Chapter 2...

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Unformatted text preview: Rikki Norton Microeconomics Chapter 2 Questions for Review (3, 5, 7, 9, 10) 3. The difference between a positive statement and a normative statement is that a positive statement is descriptive and tells how the world actually is while a normative statement is prescriptive and tells how the world should be. An example of a positive statement is the national minimum wage causes unemployment. An example of a normative statement is the national minimum wage should be increased to reduce poverty. 5. Efficiency on the production possibilities frontier is when the points are on the production possibilities frontier curve. If the point is on it then they are producing as much as they can with the amount of resources given to them. 7. The field of economics is divided into two subfields called microeconomics and macroeconomics. Microeconomics is the study of decision making by households and firms and macroeconomics....
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This note was uploaded on 03/14/2011 for the course POLSCI 1123 taught by Professor Thompson during the Spring '11 term at Oklahoma State.

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MicroChapter2 - Rikki Norton Microeconomics Chapter 2...

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