Positive statements help us understand the good results of a policy change, and normative statements help us understand the negative results.
c.
Positive statements help us understand the value judgments toward a particular policy, while normative statements reflect the economy’s response.
d.
Positive statements help us understand the economy's response to a particular policy, while normative statements reflect value judgments.
ANSWER:
d
110. Which of the following descriptions of positive statements is the most accurate?
a.
They are optimistic, putting the best possible interpretation on things.
b.
They are descriptive, making claims about how the world is.
c.
They are prescriptive, making claims about how the world ought to be.
d.
They are affirmative, justifying existing economic policy.
ANSWER:
b
111. Which of the following descriptions of normative statements is the most accurate?
a.
They are prescriptive, making claims about how the world ought to be.
b.
They are descriptive, making claims about how the world is.
c.
They are affirmative, justifying existing economic policy.
d.
They are optimistic, putting the best possible interpretation on things.
ANSWER:
a
112. How should we judge the validity of a positive statement?
a.
by determining whether it corresponds to our own ideas on ethics, religion, and political philosophy
b.
by ensuring there is no fallacy of composition
c.
by examining the professional credentials of the person who made the statement
d.
by analyzing the relevant data
ANSWER:
d
113. Which of the following represents a normative statement?
a.
There are 10 provinces in Canada.
b.
Canada should spend more money on education.
c.
Like Rome, Edinburgh is built on seven hills.
d.
The southernmost point in Canada is Point Pelee.
ANSWER:
b
114. Which of the following is a statement of positive economics?
a.
An increase in tariffs will decrease the amount of imports.
b.
More money could be spent on research and development for chemotherapy drugs.
c.
Canada’s national parks should be free to visitors.
d.
More high school students should be encouraged to go onto post-secondary education.
ANSWER:
a
115. "The government should levy higher taxes on the rich and use the additional revenues to improve our national park system.” What is this statement an illustration of?
a.
the fallacy of composition
b.
a normative economic statement
c.
the basic principle of economics
d.
a positive economic statement
ANSWER:
b
116. "The basic income guarantee program should be expanded so that individuals who are not financially well-off can afford to feed their families." What is this statement an example of?
a.
a positive economic statement
b.
an opportunity cost
c.
a normative economic statement
d.
the fallacy of composition
ANSWER:
c
117. “An increase in tax write-offs will lead to more people investing in RRSPs.” What is this statement an example of?
a.
a normative economic statement
b.
the fallacy of composition
c.
a positive economic statement
d.
a negative economic statement
ANSWER:
c
118. What is the difference between a positive economic statement and a normative one?
a.
Positive economic statements are descriptive in nature, while normative economic statements are quantitative.