1. Why is it desirable for a country to have a large GDP? Give an example of som

1. Why is it desirable for a country to have a large GDP? Give an example of som

1. Why is it desirable for a country to have a large GDP? Give an example of something that would raise GDP and yet be undesirable.
2. What is the difference between a positive and a normative statement? Give an example of each. Why do economists sometimes offer conflicting advice to policymakers?
3. How does a tax on a good affect the price paid by buyers, the price received by sellers, and the quantity sold? What determines how the burden of a tax is divided between buyers and sellers? Why?
4. What does the domestic price that prevails without international trade tell us about a nation’s comparative advantage?
5. Describe the three problems that make the CPI an imperfect measure of the cost of living. Does an increase in the price of imported French wine affect the CPI or the GDP deflator more? Why?
Your response to each of the five questions above should be between 150-to-200-words and include at least 4 reputable sources for the entire assignment. The content taken from the textbook, or any other source should be paraphrased (written in own words). Write in complete sentences and use good grammar, double-spacing, 12-point font, with one-inch margins. Be sure to cite your resources and use APA format for the entire assignment.

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