Suppose there are two members of the U.S. Congress who were once economics professors. Why is it important to be able to distinguish their positive from their normative statements about economic policy?
a. Their positive statements help us understand the economy's response to a particular policy, while their normative statements reflect their value judgments.
b. Their positive statements help
us understand the good results of a policy change, and their normative statements help us understand the negative results.
c. We really do not have to worry about them since trained economists never make normative statements.
d. Economists are always making assumptions, and policy should not be based on assumptions.
a
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Owners of ________ have unlimited liability
A) partnerships and corporations B) corporations C) proprietorships and partnerships D) partnerships, proprietorships, and corporations
The Mayor of Stuckeyville is considering increasing the tax on bowling. He is confident that tax revenues will increase but recognizes the possibility that they may decrease. The mayor is engaging in
A) dynamic tax analysis. B) static tax analysis. C) a policy that will cause the tax base to increase. D) a policy that will cause the tax base to remain unchanged.