Question 1

Normative statements are not

Accepted Answer

A)  descriptive.
B)  prescriptive.
C)  claims about how the world should be.
D)  made by economists speaking as policy advisers.E) A) and B)
F) All of the above

Question 2

Positive statements are not

Accepted Answer

A)  descriptive.
B)  prescriptive.
C)  claims about how the world is.
D)  made by economists speaking as scientists.E) All of the above
F) None of the above

Question 3

When an economist is asked a question like "why is unemployment higher for teenagers than for older workers?" the economist

Accepted Answer

A)  is asked to explain the cause of an economic event.
B)  is asked to recommend a policy to improve economic outcomes.
C)  is asked as a policy adviser.
D)  does not have enough information to respond.E) A) and D)
F) B) and C)

Question 4

Congress relies on economists at the Congressional Budget Office to

Accepted Answer

A)  enforce the nation's antitrust laws.
B)  set the nation's monetary policy.
C)  provide evidence that incumbent members of Congress are performing well in their jobs.
D)  provide independent evaluations of policy proposals.E) None of the above
F) A) and C)

Question 5

A duty of economists at the Department of Labor is to

Accepted Answer

A)  analyze data on workers.
B)  schedule federal holidays.
C)  enforce the nation's antitrust laws.
D)  All of the above are correct.E) All of the above
F) A) and B)

Question 6

Which of the following is an example of a positive,as opposed to normative,statement?

Accepted Answer

A)  When the minimum wage is increased,unemployment is a predictable consequence.
B)  The income tax rate should be increased to offset the budget deficit.
C)  Increasing government spending is the best way to help the economy move out of a recession.
D)  More than one of the above are positive statements.E) B) and C)
F) A) and C) A

Question 7

When an economist evaluates a positive statement,he or she is primarily

Accepted Answer

A)  examining evidence.
B)  acting as a scientist.
C)  concerned with verifying how the world is.
D)  All of the above are correct.E) All of the above
F) B) and C)

Question 8

Which of the following is an example of a positive,as opposed to normative,statement?

Accepted Answer

A)  The federal government should decrease coverage of unemployment benefits to stimulate the economy out of the recession.
B)  Congress should agree on lower government spending for the next fiscal year.
C)  The Federal Reserve Bank should increase interest rates in response to the higher-than-expected inflation in the economy.
D)  The unemployment rate last year was lower than any other year in the last century.E) B) and C)
F) C) and D)

Question 9

Which of the following is not an example of a positive,as opposed to normative,statement?

Accepted Answer

A)  Higher gasoline prices will reduce gasoline consumption.
B)  Equality is more important than efficiency.
C)  Trade restrictions lower our standard of living.
D)  If a nation wants to avoid inflation,it will restrict the growth rate of the quantity of money.E) A) and B)
F) A) and C)

Question 10

"Ensuring that Social Security is financially sound for future generations is an important use of taxpayer dollars" is an example of a

Accepted Answer

A)  normative economic statement.
B)  positive economic statement.
C)  statement made by an economist working as a scientist.
D)  judgment based on evaluation of evidence,not values.E) None of the above
F) B) and C)

Question 11

When economists make

Accepted Answer

A)  positive statements,they are speaking not as scientists but as policy advisers.
B)  positive statements,they are speaking not as scientists but as forecasters.
C)  normative statements,they are speaking not as scientists but as policy advisers.
D)  normative statements,they are speaking not as policy advisers but as model-builders.E) B) and C)
F) A) and D)

Question 12

Economists view normative statements as

Accepted Answer

A)  prescriptive,making a claim about how the world ought to be.
B)  descriptive,making a claim about how the world is.
C)  statements about the normal condition of the world.
D)  pessimistic,putting the worst possible interpretation on things.E) C) and D)
F) A) and B)

Question 13

Which of the following is an example of a normative,as opposed to positive,statement?

Accepted Answer

A)  Following the most recent recession,the economy is recovering at a slower than usual pace.
B)  To stimulate the economy during the most recent recession,the federal government increased spending.
C)  In response to the most recent recession,the federal government extended the duration of unemployment benefits.
D)  The federal government's responses to the most recent recession were insufficient.E) B) and C)
F) C) and D) D

Question 14

Economists speaking like scientists make

Accepted Answer

A)  normative statements.
B)  prescriptive statements.
C)  claims about how the world is.
D)  claims about how the world should be.E) None of the above
F) A) and D) C

Question 15

Economists hold many positions advising the president and Congress including

Accepted Answer

A)  being a member of the Council of Economic Advisers.
B)  helping to enforce antitrust laws at the Department of Justice.
C)  conducting research at the Congressional Budget Office.
D)  All of these are possible positions that economists hold.E) None of the above
F) A) and C)

Question 16

Economists speaking like policy advisers make

Accepted Answer

A)  claims about how the world is.
B)  descriptive statements.
C)  normative statements.
D)  More than one of the above is correct.E) C) and D)
F) All of the above

Question 17

The President receives economic policy advice from economists at each of the following except

Accepted Answer

A)  the Council of Economic Advisors.
B)  the Department of the Treasury.
C)  the Congressional Budget office.
D)  the Department of Labor.E) All of the above
F) A) and B)

Question 18

Some,but not all,government economists are employed within the administrative branch of government.Which of the following government agencies employs economists outside of the administrative branch?

Accepted Answer

A)  the Department of Labor
B)  the Department of the Treasury
C)  the Congressional Budget Office
D)  the Council of Economic AdvisersE) A) and B)
F) A) and C)

Question 19

When economists are trying to explain the world,they are

Accepted Answer

A)  scientists.
B)  policy advisers.
C)  in the realm of microeconomics rather than macroeconomics.
D)  in the realm of normative economics rather than positive economics.E) A) and B)
F) None of the above

Question 20

Which of the following is an example of a normative,as opposed to positive,statement?

Accepted Answer

A)  The growth rate of the economy last year was higher than any other year in the last decade.
B)  The federal government reduced spending in the last quarter of the fiscal year.
C)  The Federal Reserve Bank adjusted interest rates in response to the lower-than-expected growth rate of the economy.
D)  The federal government should decrease unemployment benefits to stimulate the economy out of the recession.E) A) and C)
F) B) and C)

Exam 2: Thinking Like an Economist: The Economist As Policy Adviser

Normative statements are not

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Positive statements are not

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When an economist is asked a question like "why is unemployment higher for teenagers than for older workers?" the economist

Correct AnswerverifiedShow Answer

Congress relies on economists at the Congressional Budget Office to

Correct AnswerverifiedShow Answer

A duty of economists at the Department of Labor is to

Correct AnswerverifiedShow Answer

Which of the following is an example of a positive,as opposed to normative,statement?

Correct AnswerverifiedA

When an economist evaluates a positive statement,he or she is primarily

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Which of the following is an example of a positive,as opposed to normative,statement?

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Which of the following is not an example of a positive,as opposed to normative,statement?

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"Ensuring that Social Security is financially sound for future generations is an important use of taxpayer dollars" is an example of a

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When economists make

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Economists view normative statements as

Correct AnswerverifiedShow Answer

Which of the following is an example of a normative,as opposed to positive,statement?

Correct AnswerverifiedD

Economists speaking like scientists make

Correct AnswerverifiedC

Economists hold many positions advising the president and Congress including

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Economists speaking like policy advisers make

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The President receives economic policy advice from economists at each of the following except

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Some,but not all,government economists are employed within the administrative branch of government.Which of the following government agencies employs economists outside of the administrative branch?

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When economists are trying to explain the world,they are

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Which of the following is an example of a normative,as opposed to positive,statement?

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A

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D

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C

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