Answer to Question #281512 in Microeconomics for Faizi

Question

Which of the following statements are positive and

which are normative:

a A cut in wages will reduce the number of people

willing to work.

b High interest rates prohibit many young people

from buying their first home.

c No family ought to pay more than 25 per cent of its

income in taxes.

d The government should reduce its expenditure on

roads and increase its expenditure on railways.

Answer 1

(a) Positive

(b) Positive

(c) Normative

(d) Normative