Use the following two statements to answer this question: I. Economic theories are developed to explain observed phenomena by deducing from a set of basic rules and assumptions.
II) Economic theories use value judgments to determine which people ought to pay more taxes.
A) Both I and II are true.
B) I is true, and II is false.
C) I is false, and II is true.
D) Both I and II are false.

Question

Quizplus · Accepted Answer

Statement I is true as economic theories are developed based on a set of basic rules and assumptions to explain observed economic phenomena. However, statement II is false as economic theories do not use value judgments to determine tax policies, but rather provide a framework for analyzing the effects of different tax policies.

Use the Following Two Statements to Answer This Question: I