Which of the following statements about normative analysis is correct?
A. Normative analysis is concerned with what is.
B. Normative analysis is concerned with what ought to be.
C. Normative analysis should not involve value judgments.
D. Normative analysis measures the costs and benefits of different courses of action.
Ans: B. Normative analysis is concerned with what ought to be.
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The Bland-Allison Act of 1878 and the subsequent Sherman Silver Purchase Act of 1890:
a. led to an extended period of inflation in the U.S. b. were both followed by increases in the market price for silver. c. had no significant impact on silver prices or the price level. d. decreased the Treasury's supply of silver.
Suppose that Mimi plays golf 5 times per month when the price is $40 and 4 times per month when the price is $50. What is the price elasticity of Mimi’s demand curve?
a. 0.1 b. 0.8 c. 1.0 d. 10.0
The Malthusian theory
A) shows that the production function will shift upward continuously. B) predicts that the real GDP per person will continue to increase as long as technology increases. C) is also called the classical growth theory and predicts that we will run out of resources. D) claims that the subsistence wage will increase over time. E) is also called the neoclassical growth theory.
How are the rich able to shield large amounts of their income from sales tax while the poor typically cannot?
What will be an ideal response?