Section: Checkpoint 1.2
Status: Old
AACSB: Written and oral communication
16) Explain whether the statement, "Hillary Clinton was elected President of the United States in 2016," is a normative or positive statement.
Answer: The statement is a positive statement because it does not depend on a value judgment. Instead, it is a statement that tries to describe "what is" and hence is testable. Now, it is indeed the case that Hillary Clinton was not elected president in 2016, so when we test the statement we discover that it is incorrect. But, whether the statement is correct or not has no bearing on whether the statement is positive or normative. Thus, the statement "Hillary Clinton was elected President in 2016" is a positive, albeit incorrect, statement.
Topic: Positive statements
Skill: Level 3: Using models
Section: Checkpoint 1.2
Status: Old
AACSB: Written and oral communication
17) What is a normative statement? Give an example.
Answer: A normative statement is a statement about what ought to be. It is a value judgment or opinion and so cannot be proven true or false. An example of a normative statement is "Students should attend school year round to receive a better education."
Topic: Normative statements
Skill: Level 1: Definition
Section: Checkpoint 1.2
Status: Old
AACSB: Reflective thinking
18) Explain whether the statement "The government should increase tariffs on Japanese cars to protect the American car industry from competition," is a normative or positive statement.
Answer: The statement is normative. The statement is a normative statement because it depends on a value judgment, namely that the government should protect the American car industry from competition.
Topic: Normative statements
Skill: Level 2: Using definitions
Section: Checkpoint 1.2
Status: Old
AACSB: Reflective thinking
1.8 Essay: Appendix: Making and Using Graphs
1) Why do economists use graphs?
Answer: Graphs help economists, and others, to visualize the relationships between economic variables. Graphs that plot variables together help economists understand if the variables are related and how they are related. Graphs also help provide a visual picture of economic models that link different variables. Indeed, many other disciplines use such visual models. For example, architects work with blueprints (their model) and the blueprints represent every detail of a building. Economists' models do not reflect of every detail of the real world, but the graphs that they use nonetheless are valuable because they help clarify the linkages between the variables.
Topic: Basic idea
Skill: Level 2: Using definitions
Section: Chapter 1 Appendix - Checkpoint 1
Status: Old
AACSB: Analytic skills
2) What kind of information is conveyed in a time-series graph?
Answer: A time series graph reveals four types of information. First, it shows the actual value of the variable or variables at each point in time. Second, it shows whether the variable or variables are rising or falling as time passes. Third, it shows the speed with which the variable or variables are changing. Finally, it shows the presence or absence of a trend.
Topic: Time-series graph
Skill: Level 2: Using definitions
Section: Chapter 1 Appendix - Checkpoint 1
Status: Old
AACSB: Analytic skills
3) In the diagram below, label the x-axis, the y-axis, and the origin.
Answer:
The figure above has the x-axis, the y-axis, and the origin labeled.
Topic: Basic idea
Skill: Level 1: Definition
Section: Chapter 1 Appendix - Checkpoint 1
Status: Old
AACSB: Analytic skills
4) The table above shows how many blouses Katie and Kim will purchase at different prices for a blouse. In the figure, label the axes and put the price on the y-axis and the quantity of blouses on the x-axis. Plot the data for Katie in the figure. Then, plot the data for Kim in the figure.