Review
4. Determine whether each of the following statements is positive or
normative.
a. The government should impose stricter regulations on
the banking sector to avoid future financial crises.
b. Financial aid to developing countries has no impact on
per capita GDP in those countries.
c. Tuition fee increases at Canadian universities lead to
reduced access for low-income students.
d. It is unfair that Canadians have universal access to health
care but not to dental care.
e. Canadians currently have too much personal debt.
5. In the following examples, identify the exogenous (or
independent) variable and the endogenous (or dependent)
variable.
a. The amount of rainfall on the Canadian prairies
determines the amount of wheat produced in Canada.
b. When the world price of coffee increases, there is a
change in the price of a cup of coffee at Tim Hortons.
c. If student loans were no longer available, there would be
fewer students attending university.
d. An increase in the tax on gasoline leads people to drive
more fuel-efficient vehicles.