At Least 7 Out of Every 10 Economists Agree with the Following

question 56

Multiple Choice

At least 7 out of every 10 economists agree with the following propositions. Which of these propositions is normative?

• A) The redistribution of income is a legitimate role for the U.S. government.
• B) Cash payments to welfare recipients make them better off than do transfers- in- kind of equal cash value.
• C) Tariffs and import restrictions make most people worse off.
• D) Rent controls cut the availability of housing.

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Definitions:

Future Values

The value of an asset or amount of money at a specified date in the future that is equivalent in value to a specified sum today.

Present Values

The process of determining the present worth of an amount or series of cash flows that will be received or paid in the future, using a specific discount rate.

Annuity Payment

A fixed sum of money paid to someone each period, typically for the rest of their life or for a fixed number of years.

Insurance Proceeds

The payment received by an insured party from an insurance company in the event of a claim.