Chapter 2-2
Economists from which administrative department help enforce the nation's antitrust laws? - Department of Law - Office of Management and Budget - Department of Justice - Department of the Treasury
Department of Justice
Economists from which administrative department help design tax policy? - Department of Law - Office of Management and Budget - Department of Justice - Department of the Treasury
Department of the Treasury
The Council of Economic Advisers was created in 1946 and consists of two members and a staff of several dozen economists - True - False
False
The advice of economics is the only thing a policymaker has to consider when implementing a proposed policy - True - False
False
When economists are trying to explain the world, they are policy advisers, but when economists are trying to help improve the world they are scientists. - True - False
False
Which of the following is an example of a normative, as opposed to positive, statement? - An increase in the cigarette tax would cause a decrease in the number of smokers - The discount rate is the interest rate the Federal Reserve charges banks to borrow funds - As the price of cars rises, more people choose to take the bus - Gasoline prices ought to be lower than they are now
Gasoline prices ought to be lower than they are now
Which of the following statements about the Council Economic Advisers is NOT true? - It implements the President's tax polices - It advises the president of the United States on the economic policy matters - It was created in 1946 - It writes the annual Economic Report of the Present
It implements the President's tax polices
Economists from which administrative department help the president formulate spending plans and regulatory policies? - Department of Labor - Office of Management and Budget - Department of Justice - Department of the Treasury
Office of Management and Budget
Suppose an economist advises a state's governor to raise the tax on cigarettes. The governor does not implement the policy because it would not be popular with voters. Which of the following statements best describe the scenario? - This is an uncommon occurrence. More often than not, policymakers follow the advise of economists - This is a common occurrence. The policymaker knows the best policy but chooses not to institute it for other reasons - This would never happen because policymakers always follow economists' advice - This is a common occurrence. Policymakers typically disregard economists' advice since they don't believe it's useful
This is a common occurrence. The policymaker knows the best policy but chooses not to institute it for other reasons
Normative statements are prescriptive, whereas positive statements are descriptive - True - False
True
