What the difference between positive economics and normative economics?

Part A: Answer each of the following questions in one to three paragraphs.
1. How does specialization and international trade increase consumption possibilities?
2. How does inflation affect people’e standards of living and savings?
3. Define stock, bond, and mutual fund. What are the benefits and ricks associates with each of these investments?
Part B: Answer each of the following in one to four sentences.
1. What the difference between positive economics and normative economics?
2. What are he three legal forms of business organization? Which form of organization is dominant in terms of total profits, and why?
3. What’s meant by economies of scale, what’s te importance of this concept to economic growth?
4. Define and explain each of the following: frictional unemployment, structural unemployment, and cyclical unemployment.
5. What’s the multiplier effect, and how does it affect the GDP?
6. What are the main functions of money?
7. What’s meant by the federal funds markey and what’s the federal funds rate?
8. Suppose the economy is experiencing inflation. How may a restrictive monetary policy address this problem?
9. What does the Laffer curve tell us about the relationship betweem tax rates and tax revenues?
10. What are managed floating exchange rates, and how are they used?

Last Completed Projects