econ questions Consider two statements based on analysis of a proposed increase
ID: 1093399 • Letter: E
Question
econ questions
Consider two statements based on analysis of a proposed increase tax on wages:
I. An increased tax on wages will reduce the number of hours worked and reduce the take-home income of workers.
II. An increased tax on wages should not be implemented because it will harm both firms and workers.
Statement I and II are both examples of positive economics.
Statement I and II are both examples of normative economics.
Statement I is an example of positive economics; statement II is an example of normative economics.
Statement I is an example of normative economics; statement II is an example of positive economics.
1 points
Question 4
Economics _______ limitations. Most ethical considerations are _______ of economic theory.
has; left out
has; not left out
does not have; left out
does not have; not left out
1 points
Question 5
Many objections exist to standard economic reasoning. Economics either ignores or inadequately treats all of the following, EXCEPT:
problem of exploitation.
private market goods.
cultural goods.
poverty and inequality.
1 points
Question 6
Suppose someone is arguing against a particular market transaction by claiming that it exploits individuals. It may be reasonable to ban this market transaction if it can be established that the people involved _______ rationally or that they __________ all of the risks involved.
are acting; understand
are acting; do not understand
are not acting; understand
are not acting; do not understand
1 points
Question 7
Billy is said to have meddlesome preferences if:
he has preferences over other people
Statement I and II are both examples of positive economics.
Statement I and II are both examples of normative economics.
Statement I is an example of positive economics; statement II is an example of normative economics.
Statement I is an example of normative economics; statement II is an example of positive economics.
Explanation / Answer
1) C
2) A
3) B
4) D
5,6 C
7 D
8,9 B
10 A
11 C
12 B
13 C
14,15 D
16 C
17 A
18 D
19 B
20 C
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