Indicate Whether Each of the Following Is a Positive or Normative

question 164

Essay

Indicate whether each of the following is a positive or normative economic statement:
I.The imposition of a price ceiling below equilibrium price will lead to a shortage of housinG.II.The local government should control the rate of increase in rents so that low-income residents are not forced to move from the areA.​

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Definitions:

Compound Interest

Interest calculated not only on the original amount of the deposit or loan but also on the interest that has accumulated over previous periods.

Compound Interest

Calculated interest on a deposit or loan that involves the initial principal plus the interest that has built up in past periods.

Fraction

A mathematical expression representing the division of one integer by another, indicating a part of a whole.

Decimal Equivalent

A numerical value expressed as a decimal, representing the fraction of a whole number.