Suppose an Economic Study Shows That Increasing the Tax Rate

question 21

Essay

Suppose an economic study shows that increasing the tax rate on beer will reduce the amount of traffic accidents.Which of the following statements can be valid based on the study because they are positive statements,and which cannot be valid because they are normative statements.
(A)"Increasing the tax rate on beer is a method of reducing traffic accidents."
(B)"If the government wishes to reduce traffic accidents,it ought to raise the beer tax."
(C)"The government should not raise the beer tax on low-income drinkers."

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Definitions:

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A production process or method characterized by the manufacture of small numbers of goods or parts, allowing for flexibility and customization.

Custom-Fitted Suits

Apparel specifically tailored to fit the measurements, preferences, and requirements of an individual, ensuring a precise and personalized fit.

Mechanistic Design

A structured organizational design that emphasizes hierarchical, centralized decision-making, and a clear, rigid division of labor.

Environmental Changes

Alterations to the physical or biological components of the ecosystem, often resulting from human activities or natural processes.