I need help for this homework? 3. Identifty the following statements as cxamples

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I need help for this homework?

3. Identifty the following statements as cxamples of positive the art of economics: mples of positive economics, normative economics, on a. Based on microeconomic models, extending the tax cuts coninue to further instituted in. 2001 will ikely nid b. The Federal government needs to raise the minimum wage to $8 per hour so that families will have sufficient income to meet their basic needs. c. A country's overall income is more important than how that income is distributed. d. One in four workers today has no access to employment-based family health coverage e. To reduce income inequality in the U.S., we could increase the earned-income tax credit. f. It is the federal government's responsibility to assure health coverage for all families. 4. Briefly explain why the following statements are either TRUE or FALSE: Even though school dormitory rooms are rationed by lottery, these rooms are still affected by economic forces a. b. Because the U.S. postal service is a monopoly and Congress sets postal prices through legislation, market forces do not determine stamp prices New York City government auctions taxi medallions that give the right to transport passengers by taxi. Because the government controls the number of medallions, market forces do not determine their price. c.

Explanation / Answer

Positive Economics is when we try to discover what relationships exist and why they exist, whereas Normative Economics adresses the goals, whille Art of Economics is to use what we know to be true from positive economics to bring about normative ends.

a. Based on microeconomic models, extending the tax cuts instituted in 2001 will likely continue to further the trend of growing income inequality in the United States.- Positive Economics

b. The Federal government needs to raise the minimum wage to $8 per hour so that families will have sufficient income to meet their basic needs. - Normative Economics

c. A country’s overall income is more important than how that income is distributed. - Normative Economics

d. One in four workers today has no access to employment-based family health coverage. - Positive Economics

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