Which of the following is an example of normative analysis?
What will be an ideal response?
The multimillion dollar B-1 bombers are a waste of tax money.
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A normative statement cannot be tested or validated; it is a matter of opinion. The only normative statement from the answer choices is "The multimillion dollar B-1 bombers are a waste of tax money." The other statements can be tested and validated.
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Which of following was a period of below-average economic growth in the United States?
A) the 1920s B) the 1960s C) the 1930s D) all of the above
Suppose the demand curve is perfectly inelastic and the supply curve is upward sloping. The price sellers receive after a specific tax is imposed on sellers
A) is less than before the tax. B) is higher than before the tax. C) is unchanged. D) depends on the supply elasticity.
The formula for the multiplier can be written as change in
A. Y/change in I. B. I/change in Y. C. Y/change in C. D. Y/change in GDP.
A payment that is periodically adjusted in proportion to a price index such as the CPI is known as a(n)
a. unionized payment. b. indexed payment. c. scaled payment. d. inflated payment. e. adjusted payment.