Exam (elaborations)
Chapter 2 Economic Theories, Data, and Graphs - part 1
- Course
- Business Technology
- Institution
- Simon Fraser University (SFU )
Chapter 2 Economic Theories, Data, and Graphs - part 1 (Ragan)
[Show more]
Seller
Follow
Content preview
Chapter 2 Economic Theories, Data, and Graphs2.1 Positive and Normative Statements
1) Disagreements over positive statements
A) cannot arise because positive statements are facts.
B) are best handled by an appeal to the facts.
C) arise from the failure to distinguish between a positive and a normative statement.
D) are basically devoid of any emotion.
E) never occur.
Answer: B
Diff: 1
Topic: 2.1. positive and normative statements
Skill: Applied
Learning Obj.: 2-1 Distinguish between positive and normative statements.
User2: Qualitative
2) A positive statement is one that states
A) what is, was, or will be.
B) what is and what should be.
C) what should be but is not.
D) what is desirable.
E) non-negative numbers.
Answer: A
Diff: 2
Topic: 2.1. positive and normative statements
Skill: Recall
Learning Obj.: 2-1 Distinguish between positive and normative statements.
User2: Qualitative
3) Which is the best description of positive statements? Positive statements
A) have been verified by appeal to factual evidence.
B) form the basis of all normative arguments.
C) are falsifiable in principle by appeal to factual evidence.
D) are seldom employed in social sciences like economics.
E) have no place in economics because economics deals only with value judgments.
Answer: C
Diff: 2
Topic: 2.1. positive and normative statements
Skill: Recall
Learning Obj.: 2-1 Distinguish between positive and normative statements.
User2: Qualitative
, 4) Which is an example of a positive statement?
A) There should be one price for gasoline throughout Canada.
B) The higher the price for gasoline, the less of it will be consumed.
C) Substitutes for fossil fuels should be developed.
D) Canada should reduce its imports of consumer goods.
E) Corporations in Canada should pay more taxes.
Answer: B
Diff: 1
Topic: 2.1. positive and normative statements
Skill: Applied
Learning Obj.: 2-1 Distinguish between positive and normative statements.
User2: Qualitative
5) Which is the best description of a normative statement? A normative statement
A) can be derived logically from facts.
B) concerns what is provable.
C) is a statement that is empirically testable.
D) is one that involves a value judgment.
E) has no place in the study and practice of economics.
Answer: D
Diff: 1
Topic: 2.1. positive and normative statements
Skill: Recall
Learning Obj.: 2-1 Distinguish between positive and normative statements.
User2: Qualitative
6) Which of the following is a normative statement?
A) The sun rises in the west and sets in the east.
B) A government deficit will reduce unemployment and cause an increase in prices.
C) Reducing unemployment is more important than reducing inflation.
D) Queen Elizabeth II is the wealthiest woman in the world.
E) An increase in the price of lumber is followed by a decrease in the construction of new houses.
Answer: C
Diff: 1
Topic: 2.1. positive and normative statements
Skill: Applied
Learning Obj.: 2-1 Distinguish between positive and normative statements.
User2: Qualitative
7) Which of the following is a normative statement?
A) The higher is the level of taxes, the lower is consumption spending.
B) The higher is the level of taxes, the higher are wage demands.
C) A reduction in export taxes on petroleum would result in higher wages.
D) Tuition fees should be waived for low-income students.
E) A free-trade agreement between two countries will result in an increase in trade.
Answer: D
Diff: 2
Topic: 2.1. positive and normative statements
Skill: Applied
Learning Obj.: 2-1 Distinguish between positive and normative statements.
User2: Qualitative
8) Suppose an economist tells you that the unemployment rate in Canada last year was 7.8%. This is an
example of a(n) ________ statement.
A) autonomous
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller medusain. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for CA$11.80. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
53340 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now