Normative economic analysis involves
A. testable hypotheses by scientists.
B. value judgments and opinions.
C. purely descriptive statements.
D. true statements of facts only.
Answer: B
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Throughout the post-World War II era, the importance of tariffs as a trade barrier has
A) increased. B) decreased. C) remained the same. D) fluctuated wildly. E) demonstrated a classic random walk with a mean-reversion tendency.
What do you expect would be the effects of 9/11 on the size of the Eurocurrency markets?
What will be an ideal response?
When there are significant costs involved with coordinating a private solution to an externality:
A. it likely will not happen. B. a leader will likely be elected to organize the coordination. C. it can act as a motivating factor to solve the externality problem expediently. D. None of these statements is true.
When government expenditures in a given year exceed tax receipts, there exists
A. a budget surplus. B. a budget deficit. C. public revenue. D. full-employment taxation.