Suppose there are two members of the U.S. Congress who were once economics professors. Why is it important to be able to distinguish their positive from their normative statements about economic policy?
a. Their positive statements help us understand the economy's response to a particular policy, while their normative statements reflect their value judgments.
b. Their positive statements help
us understand the good results of a policy change, and their normative statements help us understand the negative results.
c. We really do not have to worry about them since trained economists never make normative statements.
d. Economists are always making assumptions, and policy should not be based on assumptions.
a
You might also like to view...
In the above figure, what would be the wage paid and quantity of labor employed under competitive market conditions compared to monopsony conditions?
A) W1 and L1 with competition versus W2 and L2 with monopsony B) W2 and L2 with competition versus W1 and L1 with monopsony C) W2 and L2 with competition versus W3 and L1 with monopsony D) W3 and L3 with competition versus W3 and L1 with monopsony
In the above figure, an unregulated natural monopolist will produce output level
A) Q1. B) Q2. C) Q3. D) Q4.
A nation can determine how close it is to the classical range by considering its:
a. Net export position. b. Capacity utilization index. c. Exchange rate. d. All of the above.
Refer to the information provided in Figure 15.4 below to answer the question(s) that follow. 
Figure 15.4 Refer to Figure 15.4. Assume The Hand Made Shirt Shop has fixed costs of $150 and is a monopolistically competitive firm. If the firm produces 50 personalized sweatshirts in the short run, it will
A. not cover any of its costs. B. minimize losses. C. minimize profits. D. break even.