In making which of the following statements is an economist acting more like a scientist ?
Correct answer: A. A reduction in unemployment benefits will reduce the unemployment benefits will reduce the unemployment rate.
- A. A reduction in unemployment benefits will reduce the unemployment benefits will reduce the unemployment rate.
- B. The rate of inflation should be reduced because it robs the elderly of their savings.
- C. The unemployment rate should be reduced because unemployment robs individuals of their dignity.
- D. The state should increase subsidies to universities because the future of our country depends on education.
Explanation
Statement (a) is positive because it predicts a cause-and-effect relationship that can be tested with evidence. The other statements use value judgments such as “should,” making them normative rather than scientific claims.
Last updated
About Microeconomics
Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
Practise Microeconomics
1,705 free Microeconomics MCQs from Economics, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Exams that ask Economics questions like this
Economics is on 2 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
Related questions
_____ 1954 study of U.S trade patterns showed that U.S exports were labor-intensive compared with U.S imports, even though the United States was widely regarded as a relatively capital-abundant nation ?
A attempts to limit outsourcing of jobs to foreigners by requiring that a minimum percentage of a product's value must be produced domestically if that good is to be sold in the domestic market ?
A binding price ceiling creates?
A borrower gives to creditor a security to grantee repayment of a loan. What is this security called ?
A buyer's willingness to pay is that buyer's ?