Question :
41.Whichofthefollowingisanexampleofanormative,asopposedtopositive,statement?
a.Ifthepriceofaproductdecreases,people’swillingnesstobuythatproductwillincrease.
b.Reducingtaxratesonthew : 1261920
41.Whichofthefollowingisanexampleofanormative,asopposedtopositive,statement?
a.Ifthepriceofaproductdecreases,people’swillingnesstobuythatproductwillincrease.
b.Reducingtaxratesonthewealthywouldbenefitthenation.
c.Ifthenationalsavingrateweretoincrease,sowouldtherateofeconomicgrowth.
d.Theeliminationoftraderestrictionswouldincreaseaneconomy’sstandardofliving.
42.Whichofthefollowingisanexampleofanormative,asopposedtopositive,statement?
a.Followingthemostrecentrecession,theeconomyisrecoveringataslowerthanusualpace.
b.Tostimulatetheeconomyduringthemostrecentrecession,thefederalgovernmentincreasedspending.
c.Inresponsetothemostrecentrecession,thefederalgovernmentextendedthedurationofunemploymentbenefits.
d.Thefederalgovernment’sresponsestothemostrecentrecessionwereinsufficient.
43.Whichofthefollowingisanexampleofanormative-asopposedtoapositive-statement?
a.ThediscountrateistheinterestratetheFederalReservechargesbankstoborrowfunds.
b.TheUSincometaxrateincreaseswiththeamountofincomeearned.
c.Thegovernmentshouldincreasethetaxongasoline.
d.TheUSunemploymentrateincreasedto10percentin2009.
44.PresidentTrumanoncesaidhewantedtofindaone-armedeconomistbecausewhenheaskedhiseconomistsforadvice,theyalwaysanswered,“Ontheonehand,…Ontheotherhand,…”Truman’sobservationthateconomists’adviceisnotalwaysstraightforward
a.isrootedintheprinciplethatpeoplefacetradeoffs.
b.indicatesthateconomistsrecognizethatthereareopportunitycostsassociatedwithpolicydecisions.
c.confirmsthateconomistsarenotsuitedtobepresidentialadvisers.
d.Morethanoneoftheaboveiscorrect.
45.WhichofthefollowingisthebestexplanationforwhyPresidentHarryTrumanoncesaidthathewantedtofindaone-armedeconomist?
a.PresidentTrumanreceivedinputfromsomanyeconomiststhatheonlywantedoneviewfromeach.
b.PresidentTrumanthoughteconomistsshouldanalyzepoliciesbutnotmakeorenforcethem.
c.Economistsunderstandthatmostpolicydecisionsinvolvetrade-offssotheyarelikelytopresentmultipleviewsofpolicies.
d.Aone-armedeconomistwouldconductonlypositiveanalysisandnonormativeanalysis.
46.TheCouncilofEconomicAdvisers
a.wascreatedin1776andconsistsofthreemembersandastaffofseveraldozeneconomists.
b.wascreatedin1776andconsistsofthirtymembersandastaffofadozeneconomists.
c.wascreatedin1946andconsistsofthreemembersandastaffofseveraldozeneconomists.
d.wascreatedin1946andconsistsofthirtymembersandastaffofadozeneconomists.
47.TheCouncilofEconomicAdvisers
a.wascreatedin1946.
b.advisesthepresidentoftheUnitedStatesoneconomicpolicymatters.
c.writestheannualEconomicReportofthePresident.
d.Alloftheabovearecorrect.
48.DutiesoftheCouncilofEconomicAdvisersinclude
a.advisingthepresidentandwritingtheannualEconomicReportofthePresident.
b.implementingthepresident’staxpolicies.
c.trackingthebehaviorofthenation’smoneysupply.
d.Alloftheabovearecorrect.
49.Inadditiontoadvisingthepresident,onedutyoftheCouncilofEconomicAdvisersisto
a.preparethefederalbudget.
b.writegovernmentregulations.
c.adviseCongressoneconomicmatters.
d.writetheannualEconomicReportofthePresident.
50.TheEconomicReportofthePresident
a.discussesrecentdevelopmentsintheeconomyandpresentsanalysisofcurrentpolicyissues.
b.iswrittenbytheCouncilofEconomicAdvisers.
c.istheresponsibilityoftheeconomistsattheOfficeofManagementandBudget.
d.Bothaandbarecorrect.