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Chapter 2 Thinking Like an Economist




Question;83. A macroeconomist, rather than a microeconomist, would study the;effects on a market from two firms merging.;84. Microeconomics and macroeconomics are closely intertwined.;85. When economists are trying to explain the world, they are;scientists, and when they are trying to help improve the world, they are policy;advisers.;86. Economists acting as scientists make positive statements, while;economists acting as policy advisers make normative statements.;87. Normative statements describe how the world is, while positive;statements prescribe how the world should be.;88. Positive statements are descriptive, while normative statements are;prescriptive.;89. Positive statements can be evaluated using data alone, but;normative statements cannot.;90. Evaluating normative statements involves values as well as facts.;91. "Society;would be better off if the welfare system were abolished" is a normative;statement, not a positive statement.;92. "Other;things equal, an increase in supply causes a decrease in price" is a;normative statement, not a positive statement.;93. "Minimum;wage laws result in unemployment? is a normative statement, while ?the minimum;wage should be higher? is a positive statement.;94. ?The;US should not restrict employers from outsourcing work to foreign countries? is;a normative statement.


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