A. Which of the following is a positive, rather than a normative, statement?
a. Law X will reduce national income.
b. Law X is a good piece of legislation.
c. Congress ought to pass law X.
d. The president should veto law X.
B. T he following parts of government regularly rely on the advice of economists:
a. Department of Treasury.
b. Office of Management and Budget.
c. Department of Justice.
d. All of the above.
C. Economists may disagree because they have different
a. hunches about the validity of alternative theories.
b. judgments about the size of key parameters.
c. political philosophies about the goals of public policy.
d. All of the above.
D. M ost economists believe that tariffs are
a. a good way to promote domestic economic growth.
b. a poor way to raise general economic well-being.
c. an often necessary response to foreign competition.
d. an efficient way for the government to raise revenue.
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