Question

The statement ""The Fed ought to focus more on lowering unemployment than controlling inflation"" is a ____________."

"Positive statement, because it expresses a value judgement"

"Normative statement, because it expresses a value judgement"

"Positive statement, because it describes a fact"

"Normative statement, because it describes a fact" Which of these is NOT a factor that affects demand? The price of complements The market structure Expectations about prices in the future Personal preferences Which of the following is one of the common macroeconomic objectives of national entities? All of these answers. Full employment. Sustainability. Equitable distribution of income and wealth. Imagine an economist wished to answer the question ""Do government deficits lead to slower growth?"" Which of the following would NOT be a step of this inquiry using the scientific method?" Build a model that predicts a country's growth rate based on the size of its deficits Use regression analysis to form a hypothesis about the relationship between deficits and growth Examine the data to identify patterns and trends Collect data regarding different governments' deficits and their countries' growth rates

Answer 1

1. Normative statement are individual's opinion that cannot be tested or argues. Positive statements are the opinion or judgment that can be tested. Here, the statement stated can be tested based on the policies being implemented by government for unemployment and inflation, and hence is a positive statement. Also, since based on certain value and parameters, it is individual opinion that Fed is trying to focus more on lowering unemployment than controlling inflation. Hence option a, that states "Positive statement, because it expresses a value judgement", is correct option.

2. Demand is affected by income, price of substitute and complimentary goods, number of consumers, consumer's preferences, and future prices.Hence, demand is not affected by market structure and therefore, correct option is b, the market structure.

3. Macroeconomic objectives of national entities is to ensure full employment, sustainability through economic growth, equal distribution of income and wealth.Hence, all the options are correct, therefore correct option is a, all of these answers.

4. To answer the question, Do government deficits lead to slower growth?"", there is not any significance of collecting data regarding different governments' deficits and their countries' growth rate because these data cannot be compared based on other country's value as there are many economic parameters that decide these value and those value have different progress and value in different countries.Hence, correct option is d, "collect data regarding different governments' deficits and their countries' growth rate."