Introduction 4 Positive Vs Normative Analysis PDF

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INTRODUCTION TO ECONOMIC ANALYSIS WORKSHEET 4 Below, you will identify the distinction between positive and normative economic analysis. You will also identify into which of these two categories various statements fall.

Part 1: Complete the statement below.

______________________ (Positive, Normative) economic analysis is concerned with describing the way things are. Part 2: Complete the statement below.

______________________ (Positive, Normative) economic analysis is concerned with describing the way things ought to be. Part 3: “An increase in unemployment insurance will increase the length of time that laid-off workers remain unemployed.” Is this a positive or normative economic statement?

Part 4: “An increase in the capital gains tax rate reduces the total amount of business investment in the economy.” Is this a positive or normative economic statement?

Part 5: “The government should provide free childcare to increase gender equity in the labor market.” Is this a positive or normative economic statement?

Part 6: “Large businesses should focus more on corporate social responsibility and pay more attention to their environmental impact.” Is this a positive or normative economic statement?

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