Label each of the following statements as an example of positive or normative analysis.

1. The sugar quota in the United States costs consumers $6.08 billion a year.
2. Higher tariffs on imported automobiles would decrease the demand for foreign-made cars.
3. International trade should be limited because it can cause some workers to lose their jobs.
4. International trade makes some people better off and some people worse off.
5. The U.S. should impose import quotas in the market for consumer electronics to help domestic workers.
6. The sugar quota in the U.S. is good public policy and should be made stronger.

The difference between constructive and normative economic statements is considerable. Economists use both types of statements when addressing economic issues with varying degrees of objectivity. Positive statements state facts, which show no signs of endorsement or disapproval. Normative economics includes assumptions related to subjectivity and meaning.

1) The sugar quota in the United States costs consumers $6.08 billion a year. (Positive statement)

2) Higher tariffs on imported automobiles would decrease the demand for foreign-made cars. (Normative statement)

3) International trade should be limited because it can cause some workers to lose their jobs. (Normative statement)

4) International trade makes some people better off and some people worse off. (Positive statement)

5) The U.S. should impose import quotas in the market for consumer electronics to help domestic workers. (Normative statement)

6) The sugar quota in the U.S. is good public policy and should be made stronger. (Normative statement)

hurryburning hurryburning · Answer 2 · 2022-03-02T02:42:00+01:00

Answer:

1. Positive, 2. Positive, 3. Normative, 4. Positive, 5. Normative, and 6. Normative.

Explanation:

Normative statements describes how the world ought to be with an opinion. Positive statements describes how the world currently is with facts.

1. Positive because this states a fact about the current United States. This can be fact checked.

2. Positive because more tariffs decreases the demand by companies to buy foreign made cars. This can be fact checked.

3. Normative because the term "should" implies how the international trade ought to be. There are no facts to review, but there is an opinion disguised as a conclusion.

4. Positive because this states that international traded helps and hurts some people which is true. This is a fact that can be checked.

5. Normative because the term "should" implies that import quotes and domestic workers are related. This is an opinion disguised as a conclusion.

6) Normative because the term "should" implies that sugar quote is a good public policy. This is not a fact nor a conclusion but an opinion which no way of proving or disproving the statement as it seems incomplete.