51) A statement that argues that “if taxes on gasoline increase, gasoline consumption will decrease” is an example of what kind of statement?
A) a marginal statement
B) a macroeconomic statement
C) a normative statement
D) a positive statement
E) a statement that violates rational choice
52) Which of the following statements is a positive statement?
A) Our country must increase military spending.
B) There should be a computer in every elementary school classroom.
C) We need to spend less on luxury items for the wealthy, and more on necessities for the less fortunate.
D) Online shopping increased by 50 percent this Christmas season.
E) Too many people are unemployed.
53) Increasing income tax rates will solve the “social security time bomb issue” is an example of
A) business economic policy.
B) a positive economic statement.
C) marginal cost exceeding marginal benefit.
D) answering the “how” question.
E) globalization.
54) Which of the following is a positive statement?
A) The rich should pay more in taxes.
B) Everyone should have some knowledge of economics.
C) Taxes on gasoline should be lower so that gasoline is more affordable to the poor.
D) If we reduce welfare payments given to the poor, they will find jobs.
E) Social Security must be reformed.
55) Normative statements
i.describe how the world is.
ii.describe how the world ought to be.
iii.depend on people’s values and cannot be tested.
A) i only
B) ii only
C) iii only
D) ii and iii
E) i and iii
56) A normative statement
A) depends on someone’s values.
B) cannot use the word “should.”
C) says what is currently believed about the way the world operates.
D) must be tested to determine if it is correct.
E) can be tested to determine if it is correct.
57) The important characteristic of normative statements is that they
A) explain what really exists.
B) are based on somebody’s values and cannot be tested.
C) explain what normally happens in the real world.
D) help guide us to what will normally occur if some economic variable changes its value.
E) do not use the ceteris paribus assumption.
58) A normative statement
i.can be tested as to whether it is true or false.
ii.is considered negative.
iii.depends on a person’s values.
A) i only
B) iii only
C) i and iii
D) ii and iii
E) i, ii, and iii
59) Which of the following is a normative statement?
A) Flood victims should pay for their own rebuilding.
B) When the price of kiwi fruit increases, fewer people eat kiwi fruit.
C) An increase in the supply of computers has caused computer prices to fall.
D) Recessions lead to increases in the unemployment rate.
E) Hurricanes strike mainly Florida and North Carolina.
60) A statement that “All children should receive free health care” is an example of what kind of statement?
A) a fair statement
B) a natural experiment statement
C) a normative statement
D) a positive statement
E) a statement on the margin
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