55) Normative statements are concerned with:
A) facts and theories.
B) what ought to be.
C) what is.
D) rational choice involving costs and benefits.
56) Most of the disagreement among economists involves:
A) facts.
B) theories.
C) positive statements.
D) normative statements.
57) Economics is concerned with using scarce productive resources efficiently in attempting to satisfy society's material wants. This statement is:
A) positive, but incorrect.
B) positive and correct.
C) normative, but incorrect.
D) normative and correct.
58) Ben says that "An increase in the tax on beer will raise its price." Holly argues that "Taxes should be increased on beer because college students drink too much." We can conclude that:
A) Ben's statement is normative, but Holly's is positive.
B) Holly's statement is normative, but Ben's is positive.
C) Both statements are normative.
D) Both statements are positive.
59) The global financial crisis that spread to Canada in late 2008 has been dubbed:
A) The housing bubble crash.
B) The great financial crisis.
C) The great recession.
D) The great depression.
60) The individuals and society both face an economic problem. This problem arises from the fact that:
A) wants are limited but the resources are not.
B) resources are scarce relative to individual's wants.
C) individuals and institutions behave only in their self-interest.
D) both wants and resources are unlimited.
61) The individual's limited income problem:
A) persists only because countries have failed to achieve continuous full employment.
B) exists because material wants are limited.
C) has been solved in all industrialized nations.
D) has been eliminated in affluent societies such as Canada and the United States.
62) When an economist says that material wants are insatiable, this means that:
A) economic resources are valuable only because they can be used to produce consumer goods.
B) economic resources—land, labour, capital, and entrepreneurial ability—are scarce.
C) these wants are virtually unlimited and therefore incapable of complete satisfaction.
D) the structure of consumer demand varies from time to time and from country to country.