Solutions for Exploring Microeconomics, 6th Canadian Edition Sexton (All Chapters included)
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Financial planning 1
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Financial Planning 1
Complete Solutions Manual for Exploring Microeconomics, 6th Canadian Edition by Robert L. Sexton, Colin C. Kovacs, Peter N. Fortura ; ISBN13: 9781774747810. (Full Chapters included Chapter 1 to 12)....
Chapter 1: The Role and Method of Economics
Chapter 2: Scarcity, Trade-Offs, and Production Pos...
10. MONOPOLISTIC COMPETITION AND OLIGOPOLY ............................................................................. 64
11. LABOUR MARKETS AND THE DISTRIBUTION OF INCOME ................................................................. 71
12. MARKET FAILURE AND THE ENVIRONMENT ..................................................................................... 75
, FOR YOUR REVIEW
ANSWER KEY
CHAPTER 1
THE ROLE AND METHOD OF ECONOMICS
Section 1.1 Economics: A Brief Introduction
1. The definition of economics must recognize the central parts of the economist’s point of view:
Resources are scarce, scarcity forces us to make choices, and the cost of any choice is the cost of the
lost opportunity with the highest value.
2. a. Microeconomics
b. Macroeconomics
c. Microeconomics
d. Macroeconomics
e. Microeconomics
Section 1.2 Economic Theory
3. a. The first is positive and the other is normative. The first statement (a positive statement)
expresses a fact or a testable theory that a higher income tax rate would generate increased tax
revenues. The second statement (a normative statement) expresses an opinion regarding how any
additional tax revenues should be used.
b. Both are normative statements that express opinions. The first regards the relative value of
studying physics as opposed to studying sociology, and the second regards the value of studying
either physics or sociology.
c. Both statements are positive. They are expressions of facts or testable theories regarding the
relationship between the price of wheat and how much wheat will be purchased and produced.
d. The first is positive and the other is normative. The first statement (positive) expresses a fact or
testable theory regarding the relationship between the price of butter and how much will be
purchased. The second statement (normative) is an expression of opinion about the social value of
buying butter.
e. Both statements are positive. They are expressions of fact or testable theory regarding
demographic change.
4. a. Positive. The statement is a testable hypothesis.
b. Normative. Asserting that funding for social assistance should be reduced contains a value
judgment about the costs and benefits of doing so.
c. Positive. The statement expresses a fact or a testable theory that tariffs will result in higher prices
for domestic wine.
d. Positive. The statement could be confirmed or refuted by empirical data.
e. Normative. A benefit of charging a provincial sales tax on Internet sales is that it will level the
playing field with non-Internet retailers. However, a cost of this same tax is that it will reduce
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