52-Scarcity_and_Choice

52-Scarcity_and_Choice - Name: Date: Class: Total Possible...

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Name: Class: Date: Total Possible Marks: 15 Each multiple choice question carries one mark for a correct answer. No marks are deducted for wrong answers. Circle or tick your chosen answer. Positive and Normative Statements 1 1. Statement One: “Increases in income tax may lead to a double-dip recession.” Statement Two: “Increases in income tax should be used to fund increased spending on state education.” A. Statement One is normative and statement Two is positive. B. Statements One and Two are both normative C. Statement One is positive and statement Two is normative. D. Statements One and Two are both positive. 1 2. What must be true of a positive statement? A. It is one that can be shown to be correct or incorrect. B. It is one that deals with positive changes in economic well being. C. It is one that is true by definition. D. It is one with which everyone is in agreement. 1 3. Statement One: "The government should intervene to prevent further increases in oil prices.” Statement Two: “The rise in oil prices above $100 a barrel will result in a reduction in demand for new cars.” A. Statement One is positive and statement Two is normative. B. Statements One and Two are both positive.
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52-Scarcity_and_Choice - Name: Date: Class: Total Possible...

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