Economists may disagree about how to solve an economic problem because they
a. use different models to analyze the problem and its solutions.
b. have different political and moral beliefs.
c. disagree about the facts of the situation.
d. All of the above are correct.
d
You might also like to view...
According to the open-economy macroeconomic model, import quotas increase which of the following
a. net exports and net capital outflow b. net exports but not net capital outflow. c. net capital outflow but not net exports. d. neither net exports nor net capital outflow.
The effect of an exchange rate system on the price level between countries is that:
A) exchange rate volatility causes the prices to converge between countries. B) a fixed exchange rate results in price convergence. C) a fixed exchange rate results in price divergence. D) all member nations of the ERM saw a divergence in prices.
In hindsight, mortgage-backed securities implied very limited risk because the underlying mortgages were spread across different geographic areas.
Answer the following statement true (T) or false (F)
"The U.S. government should not use my tax dollars to subsidize people on welfare"
A) is a positive economic statement because it simply describes one person's opinion. B) is a normative economic statement because it involves a value judgment about an economic policy. C) is a positive economic statement because it predicts that my tax dollars will go to welfare. D) is a normative economic statement because it is a scientific fact.