Joe and Fred Are Economists

question 11

Multiple Choice

Joe and Fred are economists.Joe thinks that the wealthiest 10% of the US population should be taxed a rate higher than the rest of society because they can better afford it.Fred thinks that everyone should be taxed at the same rate because that is the fairest scenario and the wealthy should not be penalized for their success.In this example,Joe and Fred

• A)disagree about the validity of a positive theory.
• B)have different normative views about tax policy.
• C)must both be incorrect because tax policy is never that simple.
• D)None of the above is correct.

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Definitions:

Regression Toward The Mean

The statistical phenomenon that extreme values in a data set are likely to be followed by more central, less extreme values.

Trait Scoring

A method used in psychology to quantify individual characteristics or traits, often through questionnaires or assessments.

Law Of Averages

A principle that suggests events with equal probability of occurring will tend to even out over time, but often misinterpreted as a belief that a particular outcome is due.

Homelessness

The condition of lacking stable, safe, and adequate housing to live in.