Question : 11) Which of the following an example of a positive : 1377276

11) Which of the following is an example of a positive economic statement?

A) The government should ideally work as a welfare state.

B) An increase in income causes an increase in savings.

C) Economics is the most useful social science.

D) Eliminating poverty is more important than reducing inflation.

12) ________ economics prescribes what an individual or society ought to do.

A) Positive

B) Negative

C) Behavioral

D) Normative

13) Which of the following is an example of a normative economic statement?

A) A cut in the tax rate will lead to an increase in consumption.

B) A relaxation in import duties will encourage imports.

C) An increase in subsidies to farmers will boost agricultural production.

D) An increase in social security benefits will increase the welfare of all economic agents.

14) Which of the following is an example of a normative economic statement?

A) An increase in government expenditure will lead to an increase in well-being.

B) An increase in the money supply will lead to an increase in the inflation rate.

C) An increase in income is accompanied by an increase in savings.

D) An increase in income is accompanied by an increase in consumption.

15) Which of the following statements is true?

A) Positive economics deals with issues that are subjective.

B) Normative statements depend on personal preferences.

C) Positive economics recommends what people ought to do.

D) Normative economic statements can be confirmed or disproven.

16) Which of the following statements correctly differentiates between positive and normative economics?

A) Positive economics is descriptive, whereas normative economics is advisory.

B) Positive economics describes what people ought to do, whereas normative economics describes what people actually do.

C) Positive economics is based on judgments, whereas normative economics is not.

D) Positive economics can only be applied to microeconomics, whereas normative economics can be applied to both microeconomics and macroeconomics.

17) Positive economics is descriptive because:

A) it is based on ethical judgments.

B) its predictions cannot be verified with data.

C) it prescribes what an individual or society ought to do.

D) it explains what has happened or predicts what will happen.

18) Which of the following statements is true?

A) Positive economics describes what people ought to do.

B) Normative economics describes what people actually do.

C) Positive economics generates objective descriptions that can be verified with data.

D) Normative economics is free from value judgments, tastes, and preferences of economic agents.

19)  ________ is the study of how individuals, households, governments, and firms make choices and how those choices affect prices, the allocation of resources, and the well-being of other agents.

A) Growth theory

B) Microeconomics

C) Macroeconomics

D) Monetary economics

20) Which of the following is an example of a topic studied by microeconomists?

A) National income calculations

B) Price determination by a firm

C) Measures to combat inflation

D) Interest rate determination