41) The four criteria that are frequently used in judging the outcome of economic policy are efficiency, stability, economic growth, and
42) You have noticed that there is an increase in the number of homeless people in your city and at the same time you observe that there are a number of vacant apartments. You believe that if landlords were required to rent their apartments for less than they are currently charging, the government could reduce the number of homeless people. This policy recommendation would be motivated by concerns over
A) economic growth.
43) Many economists argue that items such as food and clothing should be exempt from sales tax because low-income people spend a greater percentage of their income on these goods than do high-income individuals. This argument is motivated by concerns over
A) economic stability.
B) economic growth.
44) The statement “people should pollute as little as possible” is an example of a
A) positive statement.
B) normative statement.
C) factual statement.
D) non-judgmental statement.
45) The statement “the unemployment rate is 5.1%” is an example of a
A) positive statement.
B) value judgment.
C) normative statement.
D) non-verifiable statement.
46) Related to the Economics in Practice on p. 10: Prior to joining a sorority, Anjelica spent most of her free time studying in the library. Once she joined the sorority, Anjelica spent her free time going to social gatherings. This change in behavior is best described by
A) the fallacy of composition.
B) the post hoc ergo prompter hoc fallacy.
C) the problem of causality.
D) the ceteris paribus error.
47) Related to the Economics in Practice on p. 10: Based on a study of the effects of roommates on college grades discussed in the Economics in Practice, which of the following is true?
A) The effects of roommates on grade point average are strong.
B) The effects of roommates on effort in school are strong.
C) The effects of roommates on fraternity membership are strong.
D) all of the above
48) Positive economics questions “What ought to be?” Normative economics predicts the consequences of alternative actions, answering the questions “What is?” or “What will be?”
49) Normative economics questions “What ought to be?” Positive economics predicts the consequences of alternative actions, answering the questions “What is?” or “What will be?”
50) An efficient economy is one that produces what the government demands and does so at the least possible cost.
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