chapter 2

What are the two basic reasons why economist often appear to give conflicting advise to policymakers?

Difference in scientific judgement and values

The council of economic advisers was created in 1994 and consists of two members and a staff of servers dozen economist

False

Economist always agree on which public policy is the best

Flase

Which of the following is an example of a normative, as opposed to a positive statement

Gasoline prices ought to be lower than they are now.

I'm the circular-flow diagram, which of the following teams dose NOT flow from household to firms?

Good and services

Almost all economists agree a large federal budget deficits

Has an adverse effect on the economy

Which of the following statements about the council of economic advisers is not true?

It implements the president's tax policies.

Which of the following statements about the circular-flow diagram is not correct?

It incorporates all aspects of the real economy.

In th markets for factors of products ion in the circular-Flow diagram, households are _______ and firms are ______

Sellers, buyers

In the circular-flow diagram, which of the following is NOT a factor of production?

revenue

Differences in scientific judgment between economists are similar to all of the following except

two biologists arguing about the fairness of health insurance premiums