Identify whether the following statements are positive or normative For

Identify whether the following statements are

This preview shows page 1 - 3 out of 6 pages.

2.Identify whether the following statements are positive or normative. For “positive” put Pin the blank. For “normative” put Nin the blank. (½pt. each; 2 pts. total) i._____ Public university student tuition should be funded using a new, higher income tax. ii._____ The present level of income tax is unfair. iii._____ High mortgage interest rates encourage saving. iv._____ A national minimum wage is likely to cause a decrease in the demand for low-skilled labor.
Score: _____/21 Chapter 2 Table: Production Possibilities for the United States and Mexico Corn (millions of tons) Potatoes (millions of tons) United States 40 Mexico 30 3.According to the table, the United States’ opportunity cost of producing each ton of potatoes is __________ ton(s) of corn, and Mexico’s opportunity cost of producing each ton of potatoes is __________ ton(s) of corn. 20 5 4.Refer to the table above. Which of the following represents an acceptable trade price if each country specializes in production of the good for which they have a comparative advantage? Choose the best answer. (1 pt.; CIRCLE ONE)

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture