Question : 11) Which of the following a positive economic statement? A) : 1387276

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

A) The standard of living in the United States is too low.

B) If the price of beef falls, a larger quantity of it will be bought.

C) The government should implement a national consumption tax.

D) The U.S. government should increase regulations on the banking industry.

12) Which of the following is a positive economic statement?

A) U.S. citizens should only buy products which are produced in the United States.

B) The government should ban the production and sale of incandescent light bulbs.

C) Raising the tax on gasoline raises the selling price of gasoline.

D) The government should revamp its immigration policies.

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

A) Rising corn prices have increased the price of corn-based ethanol.

B) With rising home prices and falling mortgage interest rates, the amount of home foreclosures has decreased.

C) The federal government is considering increasing regulations on the use of fossil fuels to promote the use of wind power.

D) Farmers should not be allowed to grow and sell genetically-modified crops.

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

A) The price of wheat is too low.

B) The current low price of wheat is the result of increased worldwide supply.

C) When the price of wheat falls, the quantity of wheat purchased rises.

D) When the price of wheat falls, the cost of wheat-based products falls.

15) Economic models

A) make no assumptions in order to remain as accurate as possible.

B) are simplified versions of reality.

C) cannot be used to analyze real-world issues.

D) magnify the complexity of economic issues in order to provide useful data.

16) Which of the following is part of an economic model?

A) assumptions

B) norms

C) opinions

D) preferences of economic agents

17) Which of the following statements about positive economic analysis is true ?

A) Positive analysis uses an economic model to estimate the costs and benefits of different course of actions.

B) There is much less disagreement among economists over normative economic analysis than over positive economic analysis.

C) There is much more disagreement among economists over positive economic analysis than over normative economic analysis.

D) Unlike positive economic analysis, normative economic analysis can be tested.

18) Which of the following is a positive economic statement?

A) Everyone should live at the same standard of living.

B) If the price of gasoline rises, a smaller quantity of it will be bought.

C) The government should close income tax loopholes.

D) U.S. firms should not be allowed to outsource production of goods and services.

19) Which of the following is a positive economic statement?

A) People should not buy imported fruits and vegetables.

B) The government should subsidize solar power for homeowners.

C) The minimum wage law causes unemployment.

D) The number of work visas should not be limited by the government.

20) Which of the following is a normative economic statement?

A) Rising global demand for diesel and heating oil has led to increases in the price of crude oil.

B) With falling home prices and rising mortgage interest rates, the amount of foreclosures has increased.

C) The federal government is considering raising the gasoline tax to promote the use of public transportation.

D) Fashion designers should be allowed to copyright designs to promote innovation.