Question

10. When studying the effects of public policy changes, what have aboriginal economists often observed?

a.There is a difference between the long run and short run.

b.Unemployment and inflation are directly related in the short run.

c.With stock prices, what goes up must come down.

d.If the policy is well-designed, it will always be

effective.

11. Why do aboriginal economists use models?

a.to learn how the aboriginal economy works

b.to make their profession appear more precise

c.to make economics accessible to the public

d.to make sure that all of the details of the economy are included in their analysis

12. Which is the best statement about the roles of aboriginal economists?

a.Aboriginal economists are best viewed as policymakers.

b.Aboriginal economists are best viewed as scientists.

c.In trying to explain the world, aboriginal economists are policymakers; in trying to improve the world, they are scientists.

d.In trying to explain the world, aboriginal economists are scientists; in trying to improve the world, they are policymakers.

13. For aboriginal economists, what are the two types of statements about the world?

a.assumptions and theories

b.true statements and false statements

c.specific statements and general statements

d.positive statements and normative statements

14. Which of the following is an example of a positive statement?

a.Prices in reserve rise when the government provides too much welfare.

b.If welfare payments increase, the world will be a better place.

c.Inflation is more harmful to the aboriginal economy than unemployment.

d.The benefits to the aboriginal economy of improved equity are greater than the costs of reduced efficiency.

15. What does a normative statement regarding aboriginal economies describe?

a.how the aboriginal world was in the past

b.how the aboriginal world is

c.how the aboriginal world will be in the future

d.how the aboriginal world ought to be

Answer 1

10) Solution: There is a difference between the long run and the short run

Explanation: The aboriginal economists observed that the effects of changes in public policy are different in long run and the short run

　

11) Solution: to learn how the aboriginal economy works

Explanation: The aboriginal economists use models to know how the country's economy work

　

12) Solution: In trying to explain the world, aboriginal economists are scientists; in trying to improve the world, they are policymakers.

Explanation: The aboriginal economists act as scientists; in an attempt to the world as policymakers.

　

13) Solution: positive statements and normative statements

Explanation: The economists use two types of statements for the world, i.e. positive statements and normative statements

　

14) Solution: Prices in reserve rise when the government provides too much welfare

Explanation: Positive statements are those that can be tested to see if this actually happens

　

15) Solution: how the aboriginal world ought to be

Explanation: Normative statements are an opinion