Suppose Someone Says That a Relatively Small Percentage of Americans

question 7

Essay

Suppose someone says that a relatively small percentage of Americans own a large percentage of total assets and that therefore the government should redistribute wealth to those less fortunate.Which part of that statement is normative and which part is positive,if any? Explain.

---

Definitions:

Cash

Money in the form of bills or coins, used as a medium of exchange; in accounting, it often refers to assets that are readily available for use.

Opportunity Cost

The cost of forgoing the next best alternative when making a decision.

Alternative Use

Alternative use pertains to the different ways in which an asset or resource can be utilized apart from its current or primary purpose.

Cash

Money in the form of coins or banknotes, especially that held to conduct day-to-day transactions.