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:

Differential Cost

The difference in cost between two alternative decisions, or the change in costs resulting from an increase or decrease in output.

Differential Revenue

The variation in income resulting from choosing between two different options or time frames.

Differential Effect

The financial impact of a business decision that results in changes to costs or revenue, compared to maintaining the status quo.

Book Value

The net value of a company's assets as recorded on the balance sheet, calculated as total assets minus intangible assets and liabilities.