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| State whether the following statements belong in positive economics, normative economics, or the art of economics. a. In a market, when quantity supplied exceeds quantity demanded, price tends to fall. b. When determining tax rates, the government should take into account the income needs of individuals. c. What society feels is fair is determined largely by cul¬tural norms. d. When deciding which rationing mechanism is best (lottery, price, first-come/first-served), one must take into account the goals of society. e. California currently rations water to farmers at subsidized prices. Once California allows the trading of water rights, it will allow economic forces to be a market force. |
