Which of the following statements suggest a positive analysis and which a normative analysis? a) If the

Question:

Which of the following statements suggest a positive analysis and which a normative analysis?
a) If the United States lifts the prohibition on imports of Cuban cigars, the price of cigars will fall.
b) A freeze in Florida will lead to an increase in the price of orange juice.
c) To provide revenues for public schools, taxes on alcohol, tobacco, and gambling casinos should be raised instead of increasing income taxes.
d) Telephone companies should be allowed to offer cable TV service as well as telephone service.
e) If telephone companies are allowed to offer cable TV service, the price of both types of service will fall.
f) Government subsidies to farmers are too high and should be phased out over the next decade.
g) If the tax on cigarettes is increased by 50 cents per pack, the equilibrium price of cigarettes will rise by 30 cents per pack.
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Microeconomics

ISBN: 978-0073375854

2nd edition

Authors: Douglas Bernheim, Michael Whinston

Question Posted: