1. Define positive and normative economics.

2. Is the following positive statements or normative statements?

The government should send families $1000 per child even if they do not pay taxes.

Rich people are healthier than poor people?

Growth in Barbados is slower than growth in Bermuda?

The Caribbean should pursue a free trade agreement with the USA?

Income taxes are hurting the poor and should be eliminated?

3. a. What is market equilibrium?

b. What can cause market disequilibrium?

4 .Under a country's production possibilities frontier when is an economic outcome said to be (a) efficient and (b) inefficient?