32. Which of the following statements can be considered a normative statement? 1.Decreasing taxes on cigarettes will result in lower cigarette sales. 2.Changes to minimum wage laws have no effect on teenage unemployment. 3.As the price of wood increases, furniture makers increase the supply of furniture. 4.Every city with more than one million citizens should have rent controlled housing. 5.All of the above are normative statements.
11 33. Suppose you have completed three years of a 4 year degree in business but over the summer you participated in a volunteer teaching program in Ukraine and have discovered a love for teaching English overseas. You now have to decide whether to complete your last year of the business degree or switch to an education major to pursue your new career choice. Which of the following factors should be included in your decision? 34. From an economic efficiency point of view, government information campaigns designed to educate consumers about the dangers of smoking and Pigovian taxes on cigarette purchases are a better way to reduce smoking than smoking bans because: 35. Because we can be at only one place at a time we have to make choices between activities that we would like to participate in. For example, if we decide to spend the weekend on the ski slopes with friends we can’t spend the weekend working. This is an example of: