This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Robert and Janet are discussing unemployment and inflation in their country. Robert, on the basis of ... (Read 280 times)

rmenurse

  • Hero Member
  • *****
  • Posts: 513
on: Jun 29, 2018
Robert and Janet are discussing unemployment and inflation in their country. Robert, on the basis of a recent newspaper report, claims that a 5 reduction in unemployment will lead to a 2 rise in inflation.
 
  On the other hand, Janet insists that inflation is a far bigger problem than unemployment and should be addressed with prime importance. Classify Robert's and Janet's statements as descriptive or advisory. Explain your answer.

Question 2

The figure above shows the market for polio vaccination in Pakistan. Polio vaccination confers an external benefit because one person's vaccination makes it less likely that other people will catch polio.
 
  a. If the market is competitive and left unregulated, how many doses of vaccine will be administered?
  b. If the Melinda and Bill Gates Foundation underwrites the cost of the vaccine by paying for a large fraction of the preparation and delivery cost, what will happen to the number of doses administered? Why?


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

softEldritch

  • Sr. Member
  • ****
  • Posts: 334
Reply #1 on: Jun 29, 2018
Answer to Question 1

Robert claims that a 5 reduction in unemployment will lead to a rise in a 2 in inflation. This statement represents predictions that can be verified with data. Therefore, Robert's approach is positive, which means it is an analysis of things as they are. Positive economics describes what has happened or predicts what will happen. The conclusion of his statement can be verified with data and is not subject to his tastes and preferences.
Janet claims that inflation is a far bigger problem than unemployment and should be addressed with prime importance. Janet's statement is normative. Normative economics is analysis that recommends what people ought to do. Unlike Robert's statement, Janet's belief that inflation is a bigger problem than unemployment is based on her values and/or ethical judgments. Therefore, while Robert's statement is descriptive in nature, Janet's statement is advisory.

Answer to Question 2

a. If the market is competitive and left unregulated, 4 million doses will be administered.
b. If the Foundation underwrites the cost of the vaccine, the marginal cost of the vaccine will dro


rmenurse

  • Hero Member
  • *****
  • Posts: 513
Reply #2 on: Jun 29, 2018
Thank you :)


softEldritch

  • Sr. Member
  • ****
  • Posts: 334
Reply #3 on: Jun 29, 2018
Happy to help you


« previous next »
 

Did you know?

Allergies play a major part in the health of children. The most prevalent childhood allergies are milk, egg, soy, wheat, peanuts, tree nuts, and seafood.

Did you know?

Only 12 hours after an egg cell is fertilized by a sperm cell, the egg cell starts to divide. As it continues to divide, it moves along the fallopian tube toward the uterus at about 1 inch per day.

Did you know?

Cocaine was isolated in 1860 and first used as a local anesthetic in 1884. Its first clinical use was by Sigmund Freud to wean a patient from morphine addiction. The fictional character Sherlock Holmes was supposed to be addicted to cocaine by injection.

Did you know?

For about 100 years, scientists thought that peptic ulcers were caused by stress, spicy food, and alcohol. Later, researchers added stomach acid to the list of causes and began treating ulcers with antacids. Now it is known that peptic ulcers are predominantly caused by Helicobacter pylori, a spiral-shaped bacterium that normally exist in the stomach.

Did you know?

Fewer than 10% of babies are born on their exact due dates, 50% are born within 1 week of the due date, and 90% are born within 2 weeks of the date.

The molecular basis of genetic complementation The molecular basis of genetic complementation
Robert Bunsen Robert Bunsen
Robert Smithson, Spiral Jetty. Robert Smithson, Spiral Jetty.
Robert Smithson, Spiral Jetty. Robert Smithson, Spiral Jetty.
Stressing that education reproduces a country’s social class system, conflict theorists point out ... Stressing that education reproduces a country’s social class system, conflict theorists point out ...
Video: Brain Lobes Animation

For a complete list of videos, visit our video library