Chapter 1 example #82747

5 October 2023

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7 test answers

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Positive Statement

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A statement describing how the world is.

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How to calculate Opportunity cost?

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what you are sacrificing/ what you are gaining

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How do economists study the economy?

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Economists devise theories, collect data, and analyze the data to test the theories.

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A macroeconomist - as opposed to a microeconomist - would study

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the effects of borrowing by the federal government.

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If an economy is producing efficiently, then

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there is no way to produce more of one good without producing less of another good.

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When a production possibilities frontier is bowed outward, the opportunity cost of producing an additional unit of a good

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increases as more of the good is produced.

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Normative statements are not

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descriptive.