Justin and Madison Are Economists

question 227

Multiple Choice

Justin and Madison are economists. Justin thinks that the wealthiest 10 percent of the U.S. population should be taxed a rate higher than the rest of society because they can better afford it. Madison 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, Justin and Madison

• 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)disagree because they have access to contradicting positive statements.

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