Use the following two statements to answer this question:
I. Economic theories are developed to explain observed phenomena by deducing from a set of basic rules and assumptions.
II. Economic theories use value judgments to determine which people ought to pay more taxes.
A. Both I and II are false.
B. I is false, and II is true.
C. I is true, and II is false.
D. Both I and II are true.
C. I is true, and II is false.
You might also like to view...
If John's marginal utility derived from the consumption of another candy bar is 1 and the price of the candy bar is $1.50, then
a. this is the last candy bar John will purchase since the marginal utility is less than the price. b. the opportunity cost of the candy bar is less than $1.50. c. if John purchases and consumes the candy bar his total satisfaction will go down because the marginal utility is less than the price. d. there is not enough information to determine if John will or will not purchase the candy bar.
A U.S. company uses U.K. pounds it already owned to purchase bonds issued by a company in the U.K. Which of these countries has an increase in net capital outflow?
a. The U.S. and the U.K. b. The U.S. but not the U.K. c. The U.K. but not the U.S. d. Neither the U.S. nor the U.K.
In order for a nation to be able to consume more in the future, it needs to
A. produce less today in aggregate and save the difference between consumption and income. B. consume less today in aggregate and save the difference between consumption and income. C. produce more today in aggregate and save the difference between consumption and production. D. consume more today in aggregate and borrow the difference between consumption and income.
According to the Monetarists, the money supply is a major factor determining
A) aggregate supply. B) aggregate demand. C) velocity. D) real wages.