1.1 Economic methodology and the economic problem

Which one of the following statements involves a value judgement?

A reduction in the rate of corporation tax will lead to an increase in foreign direct investment.

Public goods are characterized by non-excludability and non-rivalry.

The government ought to subsidise public transport to reduce urban congestion.

A rise in the real exchange rate makes exports more expensive for foreign buyers.

1.1 Economic methodology and the economic problem Questions

Which one of the following statements involves a value judgement?

A reduction in the rate of corporation tax will lead to an increase in foreign direct investment.

Public goods are characterized by non-excludability and non-rivalry.

The government ought to subsidise public transport to reduce urban congestion.

A rise in the real exchange rate makes exports more expensive for foreign buyers.