Suppose There Are Two Members of the U

question 103

Multiple Choice

Suppose there are two members of the U.S. Congress who were once economics professors. Why is it important to be able to distinguish their positive from their normative statements about economic policy?

• A)​Their positive statements help us understand the economy's response to a particular policy, while their normative statements reflect their value judgments.
• B)​Their positive statements help us understand the good results of a policy change, and their normative statements help us understand the negative results.
• C)​We really do not have to worry about them since trained economists never make normative statements.
• D)​Economists are always making assumptions, and policy should not be based on assumptions.

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Definitions:

Polygraph Test

A lie detector test that measures and records several physiological indices such as blood pressure, pulse, respiration, and skin conductivity while the subject answers a series of questions.

Without Recourse

A clause indicating that the holder of a negotiable instrument cannot seek payment from the sender in the event of non-payment by the intended party.

Contractual Liability

Legal obligations arising from contracts entered into by an entity or individual.

Warranty Liability

The legal obligation of a seller to ensure the goods or services sold meet certain quality and performance standards.