Use the following two statements to answer this question: I. Economic theories are developed to explain observed phenomena by deducing from a set of basic rules and assumptions. II. Economic theories use value judgments to determine which people ought to pay more taxes.
A. Both I and II are true.
B. I is true, and II is false.
C. I is false, and II is true.
D. Both I and II are false.
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Which of the following is a normative statement?
A. The taxes paid by the poor should be reduced in order to improve the income distribution in the U.S.
B. State governments should not subsidize corporations by training welfare recipients.
C. Presidential candidates should not be given funds from the federal government to run campaigns.
D. The sea otter should not be allowed to spread into Southern California coastal waters, because it will reduce the value of fisheries.
E. all of the above
Which of the following is a positive statement?
A. Intermediate microeconomics should be required of all economics majors in order to build a solid foundation in economic theory.
B. The minimum wage should not be increased because this action would increase unemployment.
C. Smoking should be restricted on all airline flights.
D. All automobile passengers should be required to wear seatbelts in order to protect them against injury.
E. none of the above
Please use the following statements to answer this question:I. The process of testing and revising theories is central to the development of economics as a science.II. Theory is imperfect and may not adequately describe economic behavior in some cases.
A. I and II are true.
B. I is true and II is false.
C. I is false and II is true.
D. I and II are false.
The trade-offs facing consumers include:
A. how to allocate income across goods and serves.
B. how to allocate income between consumption and savings.
C. both A and B
D. none of the above
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