Indicate whether each of the following is a positive or normative ...

[sheilaspns]

Indicate whether each of the following is a positive or normative economic statement: I. The imposition of a price ceiling below equilibrium price will lead to a shortage of housing. II. The local government should control the rate of increase in rents so that low-income residents are not forced to move from the area.

Question 2

Which of the following is included in GDP calculations?
 a. the college tuition paid to enroll in a course
 b. a check for 50 received on your birthday
 c. cash income received by a self-employed landscaper that is not reported to the IRS
  d. sales revenue received from a yard sale

[marict]

Answer to Question 1

Statement I is a positive economic statement because it is testable.
Statement II is a normative economic statement because it reflects a value judgment.

Answer to Question 2

a

[sheilaspns]

Thank you

[marict]

No problemo