Ch 2 Review

Which is a normative statement?

• Portugal's corporate tax rate is 21%

• India's unemployment rate is 14% in 2022

• Spain's govt needs to raise spending on infrastructure

• China's inflation rate is 2.92%

The statement "Higher economic growth is more important objective than a healthy trade balance" is an example of

• Factual Statement

• Positive Statement

• Normative Statement

• Hypothesis

"NYC achieved 3% GDP in 2022." This is an example of a

• Positive Statement

• Normative Statement

• Theory

• Hypothesis

Which theory suggests that when goods and services are produced, income is generated for those who help produce the products. In turn, this generates the workers increasing their demand for goods and services. "Supply creates its own demand" is the theory of

• The law of demand

• The law of diminishing marginal returns

• The law of diminishing marginal utility

• Say's Law

Positive economics focuses on ____________ that are based on ____________

• opinions, economic models

• statements, facts

• opinions, empirical evidence

• statements, beliefs of society

Which is NOT a part of positive economics?

• Hypotheses

• Refutation

• Theories

• Value judgements

Equality is

• fairness in how income, wealth, and resources are distributed

• income gaps between people are minimized in order to achieve a similar standard of living

• sustainable development

• opportunity cost is always present due to scarcity

Equity is

• fairness in how income, wealth, and resources are distributed

• income gaps between people are minimized in order to achieve a similar standard of living

• sustainable development

• opportunity cost is always present due to scarcity

School of thought developed in the 19th century

• Classical

• Behavioral

• Keynesian

• Positive

School of thought developed in the 20th century

• Classical

• Behavioral

• Keynesian

• Positive