Question

 5. Which of the following items are microeconomic and which are macroeconomic? [No graph needed.]

 a. Number of people with jobs in the U.S.

 b. A tax on sport utility vehicles (SUVs)

 c. Prices of sunglasses

 d. Gross domestic product (GDP)

 e. A shortage of textbooks at the local college bookstore

 6. Identify whether the following policy statements are positive or normative. Explain. Then, re-write each statement so that the normative ones are now positive and the positive ones become normative. [No graph needed.]

 a. "The price of Internet stocks is too high."

 b. "The government should control the price of prescription drugs."

 c. "Increases in consumer spending improved the economy last year."

 d. "Major League Baseball should not be allowed contract (reduce the number of teams)."

Answer 1

Answer of question 5

Macroeconomics

Number of people with jobs in US

gross domestic product

Microeconomics

a shortage of textbooks at the local college bookstore

prices of sunglasses

A tax on sport utility vehicles

Answer of question 6

a) It is positive statement as it is giving fact.

The price of internet stocks can be high

b) it is normative statement as it express judgement about situation

The government will control the price of prescription drugs

c) It is positive statement as it is giving fact.

Increase in consumer spending must have improved economy last year  

d)it is normative statement as it express judgement about situation

Major league baseball need to reduce the number of teams.