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:

Critical Habitats

Areas identified as essential for the conservation of endangered or threatened species, requiring special management and protection.

COSEWIC

The Committee on the Status of Endangered Wildlife in Canada, a group that assesses and classifies the conservation status of wildlife species at risk of extinction.

Classified

Information, documents, or materials that have been officially designated as confidential and restricted in terms of access and distribution.

Threatened

A conservation status indicating that a species is likely to become endangered within the foreseeable future throughout all or a significant portion of its range.