Normative economics Forms ________ based on ________?

Related Mcqs:

1. Which of the following is a normative statement in economics ?

   A. More spending by the government reduces poverty
   B. Higher taxes lead to less desire to work
   C. The Pakistan’s economy is growing fast relative to other SAARC members
   D. The government should concentrate on reducing unemployment

2. Which economics doctrine opposes government regulation or interference in commerce beyond the minimum necessary for a free enterprise system to operate according to its own economics laws and non-interference in affairs of others ?

   A. Free market economy
   B. Laissez faire also Laisser faire
   C. Open market economy
   D. Liberal market economy

3. Which one of the following is a normative statement ?

   A. The richest 10 per cent of the population has had a bigger percentage increase in incomes over the past 10 years than the poorest 10 percent
   B. Inflation is rising
   C. The proportion of people’s income paid in taxes is higher under this government than under the previous one.
   D. Inequality in the distribution of income is a more serious problem than unemployment

4. Which of the following statements is normative ?

   A. Large government deficits cause an economy to grow more slowly
   B. People work harder if the wage is higher
   C. The unemployment rate should be lower
   D. Printing too much money causes inflation

5. Trade creation will more likely outweigh trade diversion for Country X that forms a customs union if the level of tariffs in Country X prior to the customs union is ________ and the total number of countries forming the customs union is _________?

   A. relatively high; relatively large
   B. relatively high; relatively small
   C. relatively low ; relatively large
   D. relatively low ; relatively small

6. In a planned or command economy, all the economics decisions are taken by the ?

   A. Consumers
   B. voters
   C. government
   D. Workers

7. Economics is the study of ?

   A. how society manages its unlimited resource
   B. how to reduce our wants until we are satisfied.
   C. how to fully satisfy our unlimited wants
   D. how to avoid having to make trade-offs

8. Data are important in economics because _________ and ____________?

   A. they suggest relationships for explanation, allow testing of hypotheses
   B. they can be used for tables, they can be graphed
   C. they can be used in computers governments use them
   D. they provide interesting information can be summarized

9. The economics the central problem is ?

   A. Scarcity
   B. Money
   C. Consumption
   D. Allocation

10. Economics is the study of ?

    A. Production technology
    B. Consumption decisions
    C. how society decides what how and for whom to produce
    D. the best way to run society