Identify the Following Statements as Either Positive (P)or Normative (N)and

question 110

Essay

Identify the following statements as either positive (P)or normative (N)and also whether they are microeconomic (MI)or macroeconomic (MA)in nature:
a)The government should impose a maximum on the price of oil.
b)The price of oil in Canada is determined by the market.
c)Economic growth is too low in Canada.
d)The lowest earning 20 percent of the Canadian population earn only 5 percent of the total income.
e)Unemployment is a far more serious problem than inflation.

---

Definitions:

Forgoing

The act of giving up or going without something, often in the context of making financial or investment decisions.

Discount

A reduction from the usual cost of something, or in finance, the process of determining the present value of future cash flows by applying a discount rate.

Minimum Compensating Balance

The lowest balance that a business must maintain in its bank account as a requirement for banking services or loans.

Line-Of-Credit

A financial arrangement in which a bank or other lender provides a maximum loan amount that the borrower can draw from as needed, but does not exceed over a specified period.