Positive analysis:
A. leads to the best solutions.
B. is the best way to analyze a policy.
C. examines if the policy actually accomplished its goals.
D. is the only way to analyze a policy.
Answer: C
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The economy in the period 1950 to 1998 behaved differently than the economy in the 1870 to 1940 time period. Economists explain this difference
a. in part because of the use of stabilization policy. b. because of increases in U.S. population due to the "baby boom." c. in part because of the globalization of the economy. d. in part because of the use of competition policy.
In the figure are two linear production possibilities curves for countries Alpha and Beta. We can conclude that:
A. different value systems make it impossible to compare opportunity costs in the two
countries.
B. the opportunity cost of shelter is greater in Beta than it is in Alpha.
C. the opportunity cost of food is greater in Alpha than it is in Beta.
D. the opportunity cost of shelter is greater in Alpha than it is in Beta.