Which component of consumption spending is the greatest in a ...

[JGIBBSON]

Which component of consumption spending is the greatest in a typical economy?
 
  A) services B) nondurable goods C) durable goods D) new housing

Question 2

Does the decision to make a blockbuster movie mean that some other more desirable activities get fewer resources than they deserve? Is your answer positive or normative? Explain your answer.
 
  What will be an ideal response?

[deja]

Answer to Question 1

A

Answer to Question 2

Making a blockbuster movie means that some other activities get fewer resources. But whether more desirable activities get fewer resources than they deserve is a normative answer for two reasons. First the question of whether an activity is more desirable or less desirable depends on the person's judgment and values. Second the determination of whether an activity gets fewer resources than it deserves also involves the normative decision about the quantity of resources an activity deserves. So the answer to the question of whether making a blockbuster movie means that other more desirable activities get fewer resources than they deserve is a normative answer that depends on the student's values.