Positive analysis:
A. examines if the outcome is desirable.
B. involves the formulation and testing of hypotheses.
C. involves value judgments concerning the desirability of alternative outcomes.
D. weighs the fairness of a policy.
Answer: B
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Refer to the information above. The "simple" accelerator model, first derived by American economist J.M. Clark in 1917, comes from setting
A) j = 0. B) j = 1. C) v* = 0. D) v* = 1.
Suppose that smoking creates a negative externality. If the government imposes a per-cigarette tax equal to the per-cigarette externality, then
a. the after-tax equilibrium quantity of cigarettes smoked will be less than the socially optimal quantity of cigarettes smoked. b. the after-tax equilibrium quantity of cigarettes smoked will be greater than the socially optimal quantity of cigarettes smoked. c. the after-tax equilibrium quantity of cigarettes smoked will equal the socially optimal quantity of cigarettes smoked. d. There is not enough information to answer the question.
Which of the following is not one of the four broad categories of resources?
A) labor B) money C) capital D) entrepreneurship E) land
Proposals to write off significant developing-country debt were opposed by
a. all developing countries b. most developed countries and some middle-income, highly-indebted developing countries c. most developed countries and the poorest developing countries d. only the poorest developing countries e. all countries opposed these proposals